Absorption and variable methods of costing are two separate methods of costing. The two methods are used by almost all companies that are successful. Substitution of absorption costing and variable costing for one another may not be possible due to limitations and benefits of their own. Internal management uses the provided information by the method of variable costing for the purposes of the making of the decision. Information is provided by absorption costing that internal management and external parties such as auditors, government agencies, and creditors etc. use ("Causes of difference in net operating income under variable and absorption costing - Accounting for Management", 2017).