Do companies in either the service sector or the merchandising sector make choices about absorption costing versus variable costing?

1) Do companies in either the service sector or the merchandising sector make choices about absorption costing versus variable costing? 2)The main trouble with variable costing is that it ignores the increasing importance of fixed costs in manufacturing companies. Do you agree? Why?

Management

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Do companies in either the service sector or the merchandising sector make choices about absorption costing versus variable costing?

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