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Which of the following is the income statement formula for the absorption costing method? Sales Revenue - Cost of Goods Sold = Gross Margin -

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

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

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