Guide to Variable Costing Income Statements

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What Is Variable Costing?
What Are Variable Costing Income Statements?
All variable selling and administrative expenses are combined with variable production costs to calculate contribution margin. Gross margin (which includes both variable and fixed production costs in the cost of goods sold) is replaced by the contribution margin (which only includes variable costs in the cost of goods sold).
Pros and Cons of Variable Costing Income Statements
Normal Income Statements vs Variable Costing Income Statements
Variable Costing Income Statement Example
Other Kinds of Income Statements
Contribution Margin
Traditional
The Takeaway
3 Small Business Loan Tips
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Frequently Asked Questions
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About the Author
Lauren Ward is a personal finance expert with nearly a decade of experience writing online content. Her work has appeared on websites such as MSN, Time, and Bankrate. Lauren writes on a variety of personal finance topics for SoFi, including credit and banking.
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