Final answer:
Absorption costing income statements ignore fixed manufacturing overhead costs.
Step-by-step explanation:
Absorption costing income statements ignore the fixed manufacturing overhead costs that are incurred during the production process. These costs, such as rent, utilities, and salaries of factory managers, are not directly attributable to a specific product and are instead allocated to all units produced.
They are not expensed until the products are sold. Absorption costing income statements only include the variable manufacturing costs, such as direct materials, direct labor, and variable overhead, that directly contribute to the production of each unit.