# Absorption Versus Variable Costing Profit Gap Check

Split a profit difference between the two costing methods before explaining results.

## Scope
Preparation and review only. No account action or professional decision.

## Inputs
Units produced, units sold, fixed overhead and per-unit costs.

## Workflow
1. Compute profit under absorption costing.
2. Compute profit under variable costing.
3. Tie the gap to fixed overhead held in inventory.
4. Return the gap check without a costing policy decision.

## Output contract
method | produced | sold | fixed_overhead_in_inventory | profit | gap_explained

## Fictional acceptance test
Fictional 1,000 produced, 800 sold, fixed overhead 5 per unit. Absorption holds 1,000 of overhead in inventory, so its profit exceeds variable costing profit by exactly that 1,000.

## Review gates
Keep original values, source IDs and version dates. Unknown facts stay held. Use qualified review for hiring, legal and accounting conclusions. No send, share, sign-in, scheduling, ledger change or payment. Fictional contract review is not a live account compatibility test.

## Method source
https://corporatefinanceinstitute.com/resources/accounting/absorption-costing-guide/

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