Which of the following will appear as a line item in the traditional format of an income statement?
A) contribution margin
B) total variable costs (manufacturing and non-manufacturing)
C) total fixed costs (manufacturing and non-manufacturing)
D) gross profit

Question

Quizplus · Accepted Answer

Gross profit is a line item that appears in the traditional format of an income statement. It is calculated as revenue minus cost of goods sold. A, B, and C are not typically shown as line items on an income statement, but are used in calculating other line items such as gross profit.

Which of the Following Will Appear as a Line Item