This question relates to the results from the Grand Prix Motors question above. Which of the following sets of sentences best describes why the operating income from the absorption costing method differs from the variable costing method? The difference relates to the treatment of all manufacturing costs. The variable costing method treats manufacturing costs as period costs. The absorption costing method treats all manufacturing costs as product costs. When production exceeds sales, with absorption costing the firm will expense less than the full amount of all manufacturing costs. The difference relates to the treatment of the fixed manufacturing overhead. The variable costing method treats fixed manufacturing overhead as a period cost. The absorption costing method treats manufacturing overhead as a product cost. When production exceeds sales, with absorption costing the firm will expense less than the full amount of fixed manufacturing overhead. The difference relates to the treatment of all manufacturing costs. The variable costing method treats manufacturing costs as product costs. The absorption costing method treats all manufacturing costs as period costs. When production exceeds sales, with variable costing the firm will expense less than the full amount of all manufacturing costs. The difference relates to the format of the two income statements. One (variable costing) first deducts variable costs and then deducts fixed costs. The other (absorption costing) first deducts manufacturing costs and then deducts selling and administrative costs. The difference relates to the treatment of the fixed manufacturing overhead. The variable costing method treats fixed manufacturing overhead as a product cost. The absorption costing method treats manufacturing overhead as a period cost. When production exceeds sales, with variable costing the firm will expense less than the full amount of fixed manufacturing overhead