A variable costing income statement is the same as a:
A) classified income statement.
B) traditional income statement.
C) contribution margin income statement.
D) departmental income statement.

Question

Quizplus · Accepted Answer

A variable costing income statement focuses on the contribution margin, which is calculated as sales minus variable expenses. This is the same as a contribution margin income statement, as it highlights the financial contribution of each product or service to the business. A classified income statement categorizes expenses as either operating or non-operating, while a traditional income statement calculates net income as sales minus all expenses, including fixed expenses. A departmental income statement breaks down revenue and expenses by department or cost center.

A Variable Costing Income Statement Is the Same as A