merchandising sector

Chapter 6 – Discussion Questions
Please respond to the questions below. You are also required to respond with value-added comments to one of your classmates’ posts.

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The quiestions:
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?

comments to one of my classmates’ posts.
Here are her answers,, that you must comment about them please:
Ans1: The main difference between el absorption and variable cost is the Fixed manufacturing overheads , companies both in service and merchindising sectors don’t make choice .

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