The contribution margin and the manufacturing margin are usually equal.

$2.$ For a period during which the quantity of inventory at the end is larger than that at

the beginning, operating income reported under variable costing will be smaller than

operating income reported under absorption costing.

$3.$ In variable costing, variable factory overhead becomes part of the cost of goods

manufactured, and fixed factory overhead is considered an expense of the period.

$4.$ For a period during which the quantity of product manufactured equals the quantity

sold, operating income reported under absorption costing will be smaller than the

operating income reported under variable costing.

$5.$ For a period during which the quantity of product manufactured is less than the

quantity sold, operating income reported under absorption costing will be smaller

than operating income reported under variable costing