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What is the amount of the difference between the variable costing and absorption costing net operating...

What is the amount of the difference between the variable costing and absorption costing net operating incomes? What is the cause of this difference?

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Answer #1
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Amount:
Difference between Operating income under absorption and variable
costing is Fixed overheads on ending inventory.
Causes:
Difference is caused because in aborption costing, Fixed overheads are
being considered on number of units sold. For the rest of units which are
not sold and still in inventory, fixed overheads will be deferred next year.
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