The difference in operating profit under absorption costing and variable costing is due solely to the timing difference of expensing fixed manufacturing costs.

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Under absorption costing, fixed manufacturing costs are included as part of the cost of goods sold, while under variable costing, they are expensed as period costs. This leads to a timing difference in recognizing these costs, which can impact the operating profit reported under the two methods.

The Difference in Operating Profit Under Absorption Costing and Variable