In the absorption costing income statement,deduction of the cost of goods sold from sales yields contribution margin.

Name: In the absorption costing income statement,deduction of the cost of goods sold from sales yields contribution margin.
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In the absorption costing income statement, the deduction of the cost of goods sold from sales yields gross margin, not contribution margin. Contribution margin is a term used in variable costing, representing sales revenue minus variable costs.

In the Absorption Costing Income Statement,deduction of the Cost of Goods