Operating income, using variable costing, is contribution margin less
A)cost of goods sold.
B)fixed manufacturing overhead and fixed operating expenses.
C)fixed and variable operating expenses.
D)fixed and variable manufacturing overhead.

Question

Quizplus · Accepted Answer

Operating income under variable costing is calculated by subtracting fixed manufacturing overhead and fixed operating expenses from the contribution margin.

Operating Income, Using Variable Costing, Is Contribution Margin Less