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Two positions have normally been taken with respect to the recording of fixed manufacturing overhead...

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Accounting

Two positions have normally been taken with respect to the recording of fixed manufacturing overhead as an element of the cost of plant assets constructed by a company for its own use:

  1. It should be excluded completely.
  2. It should be included at the same rate as is charged to normal operations.

What are the circumstances or rationale that support or deny the application of these methods?

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