Prepare an inopme statement under the absorption meehod. If an ambunt box does not require an entry, Meawe it blank: e oheca by Bas? Fcres ay Win mind when calculating net inceme under each aswumption, Depending on the cast method chasen, there will be differences due to the way fixed costs are treated under ead method (absorption and variable). Prepare a reconotiation between the two statements. Frothere F cred in wasa Absorpeon costing includes all costs necessary foe production. Conversely, variable costing only uses the variable costs that relate diketly to the arobuctien prucess. Keep t; mind when calculating nef income under each assumption. Depending on the cost method chasen, there will be differences due to the way fixed casts are ereated under eac method (absorption and variable)