To convert variable costing income to absorption costing income,management will need to add fixed overhead cost deferred in ending inventory and subtract fixed overhead cost recognized from beginning inventory.

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This is true because under absorption costing, fixed overhead costs are included in the cost of goods sold and ending inventory, while under variable costing, fixed overhead costs are only expensed in the period in which they are incurred. Therefore, to convert from variable costing income to absorption costing income, management must add any fixed overhead costs deferred in ending inventory and subtract any fixed overhead costs recognized in beginning inventory.

To Convert Variable Costing Income to Absorption Costing Income,management Will