Required information

I he ditterence between absorption costing net operating income and variable costing net operating income can be explained by the way these two methods account for

all overhead costs

fixed overhead costs

selling and administrative expenses

variable overhead costs

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Absorption costing income statements ignore $$

References

direct materials and direct labor costs

direct and indirect cost distinctions

product and period cost distinctions

variable and fixed cost distinctions

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When the number of units produced is greater than the number of units sold, variable costing net operating income will be

the same as absorption costing net operating income

greater than absorption costing net operating income

less than absorption costing net operating income