A significant difference between absorption costing and variable costing centers around the debate of whether fixed manufacturing overhead is justified as a product cost. Because your professor is scheduled to address a national professional meeting at the same time your class would ordinarily meet, the class has been divided into teams to confront selected issues. Your team’s assignment is to prepare a report arguing both sides of the issue stated above. You are also expected as a team to draw your own conclusion and so state it in your report along with the basis for your conclusion.