Which of the following line descriptions would not be found on an income statement prepared using absorption costing?
A) Sales
B) Contribution margin
C) Cost of goods sold
D) Net income

Question

Quizplus · Accepted Answer

Contribution margin is a term used in variable costing method, and therefore would not appear on an income statement prepared using absorption costing. The other items - Sales, Cost of goods sold, and Net income - are all part of an income statement prepared using absorption costing.

Which of the Following Line Descriptions Would Not Be Found