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