Gross margin is to absorption costing as ____ is to variable costing.
A) gross profit
B) contribution margin
C) income
D) territory margin

Question

Quizplus · Accepted Answer

Gross margin is a term used in absorption costing, which includes both variable and fixed costs in the cost of a product. In contrast, variable costing only includes variable costs in the cost of a product. Therefore, the equivalent term in variable costing is contribution margin.

Gross Margin Is to Absorption Costing as ____ Is to Variable