1) Ch 21 begins with a discussion of the differences between Absorption Costing and Variable Costing. Think back to the various methods we have worked with this semester- job order costing, process costing, activity-based, and just in time. Which of these are absorption? Which are variable? Both absorption and variable? Neither absorption or variable? Why? 2) In the variable costing income statement, how are the fixed manufacturing costs reported and how are the fixed selling and administrative expenses reported? How is this different from absorption costing income statements? How does this difference impact the usefulness of a variable costing income statement? 3) Why is variable costing not used for external reporting