Which of the following does not typically appear on an income statement prepared by using a traditional format?
A) Cost of goods sold.
B) Contribution margin.
C) Gross margin.
D) Selling expenses.
E) Administrative expenses.

Question

Quizplus · Accepted Answer

Contribution margin is typically not shown on a traditional income statement. Traditional income statements focus on gross margin (revenue minus cost of goods sold), followed by operating expenses (like selling and administrative expenses) to calculate net income. Contribution margin is more commonly used in managerial accounting and cost-volume-profit analysis.

Which of the Following Does Not Typically Appear on an Income