Which of the following line descriptions would not be found on an income statement prepared using absorption costing?
A) Sales
B) Contribution margin
C) Cost of goods sold
D) Net operating income

Question

Quizplus · Accepted Answer

Contribution margin is a term used in variable costing, which is not used in absorption costing. The remaining options, Sales, Cost of goods sold, and Net operating income are all components found on an income statement prepared using absorption costing.

Which of the Following Line Descriptions Would Not Be Found