Consider the Following Comments About Absorption- and Variable-Costing Income Statements

Multiple Choice

Consider the following comments about absorption- and variable-costing income statements:
I. A variable-costing income statement discloses a firm's gross margin.
II. Cost of goods sold on an absorption-costing income statement includes fixed costs.
III. The amount of variable selling and administrative cost is the same on absorption- and variable-costing income statements.
Which of the above statements is (are) true?

A) I only.
B) II only.
C) I and II.
D) II and III.
E) I, II, and III.