Which of the Following Is the Income Statement Formula for the Variable

question 10

Multiple Choice

Which of the following is the income statement formula for the variable costing method?

• A) Sales Revenue - Cost of Goods Sold = Gross Margin - All Fixed Expenses = Operating Income
• B) Sales Revenue - All Variable Costs = Contribution Margin - All Fixed Expenses = Operating Income
• C) Sales Revenue - Variable Manufacturing Costs = Contribution Margin - Fixed Manufacturing Costs = Operating Income
• D) Sales Revenue - Cost of Goods Sold = Gross Margin - Selling and Administrative Expenses = Operating Income

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Definitions:

Physical Job Withdrawal

Actions taken by employees to distance themselves from their work tasks, often as a result of dissatisfaction or disengagement, such as taking extended breaks or excessive absenteeism.

Job Involvement

The degree to which people identify themselves with their jobs.

Job Withdrawal

The process whereby an employee disengages from their current job role, which may lead to quitting or significantly reduced productivity.