Which of the following statements is correct?
A)The income statement prepared under the contribution approach reports gross margin.
B)The income statement prepared under the absorption approach reports contribution margin.
C)The income statement prepared under the contribution approach reports total variable expenses.
D)None of the above

Question

Quizplus · Accepted Answer

The income statement prepared under the contribution approach reports total variable expenses, as it separates variable costs from fixed costs to highlight the contribution margin.

Which of the Following Statements Is Correct