Absorption accounting, also known as full costing, is a widely used accounting method in financial reporting that allocates all manufacturing costs, both foxed and variable, to the cost of products or services. This approach aims to provide a more accurate representation of the true cost of production, including: the portion of fixed overhead costs attributed to each unit. Let's dehe into various aspects of atsorption accounting and its implications: A. Principles of Absorption Accounting: Define absorption accounting and explain the fundamental principles underlying this approach. How does it differ from variable costing, and what are the key objectives of applying absorption accounting in financial reporting? Discuss the components of manufacturing costs under absorption accounting, distinguishing between direct and indirect costs. How are these costs allocated to products, and why is the allocation of fixed overhead costs particularly significant in this method