Absorption costing, sometimes known as total absorption costing, is the basis of all conventional financial accounting statements. Marginal costing distinguishes between fixed costs and variable costs as conventionally classified. I In one month, a company produced and sold 20,000 units of a product. Costs and revenues were as follows: Sales Variable production costs: Fixed production costs Variable administrative and Selling overheads BD 100,000 35,000 15,000 25,000 Required: (a) Prepare operating statements based on both absorption and marginal costing to illustrate the characteristics of these approaches. (6 Marks) (b) Explain the key differences between marginal costing and full absorption costing (4 Marks)