variable costing
cost of goods sold = variable manufacturing costs per unit × units sold
contribution margin = (selling price × units sold) – (all variable costs × units sold)
operating income = Contribution margin – (all fixed costs per unit × units Produced)
absorption costing.
cost of goods sold = all manufacturing costs per unit × units sold
gross margin = (selling price – variable manufacturing costs per unit – fixed manufacturing costs
per unit) × units sold
operating income = gross margin – all non-manufacturing costs
Throughput Costing
cost of goods sold = direct materials costs per unit × units sold
throughput margin = (selling price × units sold) – (direct materials costs per unit × units sold)
operating income = throughput margin – all manufacturing costs (other than direct materials) –
all non-manufacturing costs