The super-variable costing net operating income period can be computed by multiplying the number of units sold by the gross margin per unit.

Question

Quizplus · Accepted Answer

The net operating income under variable costing is calculated by deducting only the variable expenses from the sales, whereas the gross margin is calculated by deducting the cost of goods sold from sales. Therefore, the net operating income under variable costing cannot be computed by multiplying the number of units sold by the gross margin per unit.

The Super-Variable Costing Net Operating Income Period Can Be Computed