The profits calculated by marginal costing and absorption costing arc different because of:

Marginal costing treats fixed manufacturing overheads as period costs, while absorption costing includes them in product costs by capitalizing them into inventory valuation. The difference in profit arises because closing stock under absorption costing includes some fixed overheads, which are deferred to the next period, whereas under marginal costing, all fixed overheads are charged to the period in which they are incurred.