Question: US GAAP is more aligned with Absorption costing based on the theory that certain fixed costs do, in fact, support the manufacturing process and should

US GAAP is more aligned with Absorption costing based on the theory that certain fixed costs do, in fact, support the manufacturing process and should therefore be included in inventory value on the balance sheet (prior to the sale of the goods). Which approach do you personally believe has more value to managers --- absorption costing or variable costing --- and why?

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