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What the functionality of "Standard Cost Overhead Absorption Rules"

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If we navigate to "Manage Accounting Overhead Rules" there is second tab with name "Standard Cost Overhead Absorption Rules". The functionality of this is not clear and as per documentation its not a mandatory setup as well.

Content (required):

The absorption rules work fine even without this, but cant figure out the use by going through standard web documentation given at "Cost Accounting (Chapter 11) 21C ("

Version (include the version you are using, if applicable):

21C (

Code Snippet (add any code snippets that support your topic, if applicable):

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