Assume that KTM (KTM.com) is considering offering financing services for its dealers. However, instead of developing the

Question:

Assume that KTM (KTM.com) is considering offering financing services for its dealers. However, instead of developing the division internally, KTM is considering buying a company that already offers such services.
Required
Would absorption or variable costing be most useful to KTM in evaluating whether to acquire an existing business that provides financing services similar to those offered by Polaris? Explain.
Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...