6. Letâs use the Widget Works data to illustrate the difference between absorption and variable costing. Hereâs the original information again.
7. What would a variable costing income statement look like here?
8. But absorption costing net income was... HmmmâŠthatâs a difference of $9,000! Weâre better off (smaller loss), but where did the $9,000 come from?