As with the absorption costing income statement, you begin a marginal costing income statement by calculating gross sales for the period. Next, you calculate variable cost of goods sold and ...

The traditional income statement format uses absorption or full costing, in which variable and fixed manufacturing costs are part of the inventory costs and, thus, part of the cost of goods sold ...

The income statement, also known as the profit and loss statement, is an important tool as it calculates the profitability or loss of a business.