Which of the following will usually be found on an income statement prepared using absorption costing?
A) Choice A
B) Choice B
C) Choice C
D) Choice D

Question

Which of the following will usually be found on an income statement prepared using absorption costing? 
A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D

Quizplus · Accepted Answer

Absorption costing includes all variable and fixed manufacturing costs, such as direct materials, direct labor, and overhead costs. Therefore, all of these costs would be found on an income statement prepared using absorption costing. Choice A, sales revenue, is found on both absorption costing and variable costing income statements. Choice B, contribution margin, is only found on a variable costing income statement. Choice D, unit product cost, is a calculation used in both absorption and variable costing, but is not a line item on the income statement itself.

Which of the Following Will Usually Be Found on an Income