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

question 3

Multiple Choice

Which of the following is the income statement formula for the absorption 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

---

Definitions:

Experiential Risk

The potential for loss or negative outcomes resulting from direct personal experiences or activities.

Schizophrenia

A mental disorder characterized by disturbances in thought, perception, and behavior, leading to a disconnect from reality, often manifested as hallucinations, delusions, and disorganized thinking.

Conversion Disorder

A mental health condition where an individual exhibits neurological symptoms, such as blindness or paralysis, without a physical cause.

Hands Went Numb

A loss of sensation or feeling in the hands, often caused by nerve damage, poor circulation, or conditions affecting the nervous system.