A variable costing income statement is the same as
A) a contribution margin income statement.
B) a traditional income statement.
C) a cost-volume-profit income statement.
D) none of these choices.

Question

Quizplus · Accepted Answer

A variable costing income statement focuses on the contribution margin, which is the difference between sales revenue and variable costs. Therefore, it is also called a contribution margin income statement. A traditional income statement includes both variable and fixed costs, and a cost-volume-profit income statement is a type of analysis that examines the relationship between costs, volume, and profits, rather than a type of income statement.

A Variable Costing Income Statement Is the Same as