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

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