Which of the following would be reported on a variable costing income statement?
A)Gross margin
B)Cost of goods available for sale
C)Total cost of goods sold
D)Contribution margin
E)Work-in-process inventory

Question

Quizplus · Accepted Answer

Variable costing income statements focus on the contribution margin, which is calculated by subtracting variable expenses from sales revenue. Cost of goods sold is also reported, but gross margin and cost of goods available for sale are not relevant to this format. Work-in-process inventory is a balance sheet account and would not be reported on an income statement.

Which of the Following Would Be Reported on a Variable