absorbtion costing

lgarside
lgarside Registered Posts: 122 Dedicated contributor 🦉
Hello I was wondering if anyone can clarify something for me. In our studies we were taught about absorbtion costing and allocation of costs to a product but I was just wondering if this procedure works for service industries? Where I work they don't seem to do anything like this they just simply use indexations and market prices to arrive at selling prices for the next year?? Would you only use absorbtion costing for say manufacturing?
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