Absorption-costing income statements do not need to differentiate between variable and fixed costs.

Name: Absorption-costing income statements do not need to differentiate between variable and fixed costs.
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Quizplus · Accepted Answer

Absorption costing includes all manufacturing costs, whether they are variable or fixed, in the cost of goods sold. Therefore, the income statement does not need to differentiate between variable and fixed costs as they have already been included in the cost per unit.

Absorption-Costing Income Statements Do Not Need to Differentiate Between Variable