The variable-costing income statement separates costs into fixed costs and variable costs.

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The variable costing income statement separates costs into fixed costs and variable costs, allowing for a clearer understanding of the cost structure and contribution margin of a company's products or services. This is in contrast to absorption costing, which includes all manufacturing costs, fixed and variable, in the cost of goods sold.

The Variable-Costing Income Statement Separates Costs into Fixed Costs and Variable