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