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Feedback Check My Work b. Under variable costing, the cost of goods manufactured includes only variable manufacturing costs. What is the reason for the difference in the amount of operating income reported in (a) and (b)? er the absorption costing V method, the fixed manufacturing cost included in the cost of goods sold is matched with the revenues. Under variable costing V , all of the fixed manufacturing is deducted in the period in which it is incurred, regardless of the amount of inventory change. Thus, when inventory increases, the absorption costing income statement will have a higher ating income. Feedback Check My Work c. Consider what causing the difference in operating income reported under the two methods. There is a need for management to exercise care in interpreting operating income reported under absorption costing when significant changes in inventory levels occur. eedback Check My Work Correct y Work Next I Q L O H C BOOC 8:57 PM 4/3/2023