What Factor Related to Manufacturing Costs Causes the Difference in Operating

Multiple Choice

What factor related to manufacturing costs causes the difference in operating income computed using absorption costing and operating income computed using variable costing?

A) Absorption costing expenses all costs,whether fixed or variable.
B) Absorption costing "inventories" all direct manufacturing costs.
C) Absorption costing "inventories" all fixed manufacturing and period costs.
D) Absorption costing "inventories" all fixed manufacturing costs.