The gross-margin format of the income statement highlights the lump sum of fixed manufacturing costs.

Question

Quizplus · Accepted Answer

The gross-margin format of the income statement highlights the gross margin, which is calculated as revenue minus cost of goods sold (COGS). It does not explicitly show fixed manufacturing costs. However, if the COGS includes fixed manufacturing costs, then they will indirectly be reflected in the gross margin.

The Gross-Margin Format of the Income Statement Highlights the Lump