What is the equivalent of gross margin on a variable costing income statement?
A)gross profit
B)contribution margin
C)net income
D)territory margin

Question

Quizplus · Accepted Answer

Gross margin is calculated as sales revenue minus cost of goods sold, while contribution margin is calculated as sales revenue minus variable expenses. Both measures focus on the contribution of sales to covering variable costs and have a similar purpose on a variable costing income statement.

What Is the Equivalent of Gross Margin on a Variable