Answered>Order 9252
Which of the following is the income statement formula for the variable costing method?
- Sales Revenue – All Variable Costs = Contribution Margin – All Fixed Expenses = Operating Income
- Sales Revenue – Cost of Goods Sold = Gross Margin – All Fixed Expenses = Operating Income
- Sales Revenue – Variable Manufacturing Costs = Contribution Margin – Fixed Manufacturing Costs = Operating Income
- Sales Revenue – Cost of Goods Sold = Gross Margin – Selling and Administrative Expenses = Operating Income
Which of the following is the correct sequence of the five steps of implementing and using an activity-based costing system?
- Identify overhead cost activities, identify measurable cost drivers, assign overhead, analyze individual overhead costs in terms of those cost activities, and use the cost data to make decisions
- Identify measurable cost drivers, assign overhead, identify overhead cost activities, analyze individual overhead costs in terms of those cost activities, and use the cost data to make decisions
- Identify overhead cost activities, analyze individual overhead costs in terms of those cost activities, identify measurable cost drivers, assign overhead, and use the cost data to make decisions
- Use the cost data to make decisions, analyze individual overhead costs in terms of those cost activities, identify measurable cost drivers, assign overhead, and identify overhead cost activities