The contribution-margin format of the income statement:
A)calculates gross margin.
B)distinguishes manufacturing costs from nonmanufacturing costs.
C)is used with absorption costing.
D)highlights the lump sum of fixed manufacturing costs.

Question

Quizplus · Accepted Answer

The contribution-margin format highlights the lump sum of fixed manufacturing costs by separating variable costs from fixed costs, focusing on contribution margin rather than gross margin.

The Contribution-Margin Format of the Income Statement