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

Question

Quizplus · Accepted Answer

The gross-margin format of the income statement distinguishes between manufacturing and nonmanufacturing costs, presenting gross margin as sales minus cost of goods sold, where cost of goods sold includes only manufacturing costs.

The Gross-Margin Format of the Income Statement