Answer
No, companies in the service and merchandising sectors don't typically decide between absorption costing and variable costing. The difference between these methods is mainly about how manufacturing costs are handled, and these types of companies don't have manufacturing costs in the same way that manufacturing companies do. So, it's not a decision they need to make.
Work Step by Step
No, companies in the service and merchandising sectors don't typically decide between absorption costing and variable costing. The difference between these methods is mainly about how manufacturing costs are handled, and these types of companies don't have manufacturing costs in the same way that manufacturing companies do. So, it's not a decision they need to make.
