Which of the following does not appear on an income statement prepared using variable costing?
A) Gross margin
B) Contribution margin
C) Fixed production costs
D) Variable production costs

Question

Quizplus · Accepted Answer

Gross margin does not appear on an income statement prepared using variable costing because gross margin is calculated by subtracting cost of goods sold (which includes both fixed and variable production costs) from sales revenue, a method used in absorption costing. Variable costing separates costs into variable and fixed categories, focusing on contribution margin (sales minus variable costs).

Which of the Following Does Not Appear on an Income