A variable costing income statement is also called a traditional income statement.

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A variable costing income statement is different from a traditional income statement. In a variable costing income statement, only the variable costs (such as direct materials, direct labor, and variable manufacturing overhead) are included in the cost of goods sold, while fixed manufacturing overhead costs are treated as period expenses and are not included in the cost of goods sold. In a traditional income statement, both variable and fixed manufacturing overhead costs are included in the cost of goods sold.

A Variable Costing Income Statement Is Also Called a Traditional