How does Assembler find variables in memory?

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I'm pretty new to Assembly but I know some of the basics. So let's say we have a variable var (Byte) in a data segment DataS. When the instruction MOV AL, var is executed, how does the assembler find var?

I mean how does it go from reading a set of characters (var) to finding it's address in memory, or rather, it's displacement relative to DS? and what part does the directive ASSUME DS:DataS play in this process? Isn't having DataS's adress in the register DS enough?

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