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I would like to know whether closing inventory is always valued at full production cost or total cost? Is this statement true for closing inventory under both absorption and marginal costing?
Full production cost and total cost mean the same thing.
With marginal costing inventory is valued at the total marginal/variable cost of production. With absorption costing it is value at the full cost of production including fixed production cost.
This is all explained in my free lectures on absorption and marginal costing.
The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
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