Income Statement Equations

Question 1

Revenues

Answer 1

Sales + Other Income (Loss)

Question 2

Total Costs

Answer 2

Operating Expenses + Interest Expenses (Income) + Income Taxes

Question 3

Operating Expenses

Answer 3

Variable Cost + Base Costs
or
COGS + COSS + SG&A

Question 4

Direct Manufacturing Expenses

Answer 4

Direct Material + Direct Labor

Question 5

Indirect Manufacturing Expenses

Answer 5

Applied Overhead