6. 1. What is the difference between absorption costing and variable costing? 2. Distinguish between product costs and 7. period costs. 8. 9. 3. What effect will applying variable costing have on the income statement and the bal- ance sheet? 4. What are the advantages and disadvan- tages of using variable costing? 5. How is it possible, under absorption cost- ing, to increase net income by simply pro- ducing more goods? 10. 11. 6. What is the difference between gross mar- gin and manufacturing margin? 7 Why on thorn chin. sino shoorn 11. What is cost-volume-profit analysis