How is the contribution margin calculated when utilizing variable costing?
A)Sales less variable cost of goods sold
B)Sales less variable cost of goods sold,less variable selling and administrative expenses
C)Sales less cost of goods sold
D)Sales less variable cost of goods sold,less variable selling and administrative expenses,less fixed cost of goods sold,less fixed selling and administrative expenses

Question

Quizplus · Accepted Answer

The contribution margin is calculated as Sales minus all variable costs, which includes both variable cost of goods sold and variable selling and administrative expenses.

How Is the Contribution Margin Calculated When Utilizing Variable Costing