Absorption Costing

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April 16, 2018 at 8:34 pm #447550
bekzod
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Hello Sir,
I have one question relating Absorption costing. Can we use absorption costing in service industry, or absorption costing is only used in manufacturing industry?
Thank you!
April 17, 2018 at 7:46 am #447629
John Moffat
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Absorption costing can be used in service industries. For example, firms of accountants use it by absorbing their fixed costs on an hourly basis.
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