Chapter 8 - Variable costing and the costs of quality and sustainability. After completing this chapter, you should be able to: Explain the accounting treatment of fixed manufacturing overhead under absorption and variable costing, prepare an income statement under absorption costing, prepare an income statement under variable costing,. | Lecture Managerial accounting: Creating value in a dynamic business environment (10th edition): Chapter 8 - Ronald W. Hilton, David E. Platt