$3.$The key difference between a variable and an absorption costing income statement is that an absorption costing income statement

reports contribution margin, while a variable costing income statement reports gross margin

reports costs by function, while a variable costing income statement reports costs based on behavior

includes fixed and variable costs while only variable costs are included on a varlable costing income statement

includes fixed and variable production costs as inventoriable, while a variable costing income statement includes both variable production and variable selling and administrative costs as inventoriable