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What is Costing Methods Comparison for Alesca S.A. about?

The document compares direct costing and absorption costing. It explains that when the production volume equals sales volume, profits are the same under both methods. When production is greater than sales, profit is higher with absorption costing, as this method includes part of the fixed costs in inventory. When sales are greater than production, profit is lower with absorption costing because this method includes the fixed costs of the beginning inventory in the results of the sales period.

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