summarize Variable costing and absorption costing are two different methods used for cost accounting. The main difference lies in the treatment of fixed manufacturing overhead costs. In variable costing, these costs are treated as period costs and are expensed in the period they occur. In absorption costing, these costs are treated as product costs and are tied to the production of goods.Explanation:Variable Costing: Also known as direct costing, this method includes only variable costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold. Fixed manufacturing overhead costs are treated as period costs and are expensed in the period they occur. This method is often used for internal decision-making processes because it can provide a clearer picture of the incremental costs associated with producing each additional unit.Absorption Costing: Also known as full costing, this method includes both variable and fixed manufacturing overhead costs in the cost of goods sold. These costs are spread over the units produced, so a portion of the fixed costs is assigned to each unit. This method is required for external financial reporting and tax purposes in many jurisdictions.Implications:Profit Measurement: Under variable costing, profits can be more volatile as they will increase when sales increase and decrease when sales decrease. Under absorption costing, profits may be higher or lower depending on the level of production and sales.