Chapter 6, Problem 20Q

To determine

Variable Costing:

The variable costing is the method of costing in which only the variable production costs such as the direct material, direct cost, and variable overhead costs are included in that time period in which they are incurred.

Absorption Costing:

The absorption costing is the method of costing in which all the costs are included that is associated with the manufacturing process of the product.

To Identify: Whether there is any difference between the net income under the absorption costing and variable costing, if the production equals sales.