• What is the difference between absorption costing and variable costing?
• Compute unit product costs under each method.Prepare income statements using both variable and absorption costing.Why might the two amounts differ?
• Are selling and administrative expenses treated as product costs or period costs under variable costing?What about manufacturing overhead (MOH) costs?
• What are the arguments in favor of treating fixed MOH costs as product costs?As period costs?
• Under absorption costing, how is it possible to increase net income without increasing sales?

Can you help me understand these terms? Thank you in advance?