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Social Science Clinic => Accounting => Topic started by: Alygatorr01285 on Mar 6, 2021

Title: Which of the following statements is true of gross-margin format of the income statement?
Post by: Alygatorr01285 on Mar 6, 2021

Question 1

Which of the following statements is true of contribution-margin format of the income statement?
◦ It is used for absorption costing.
◦ It distinguishes between variable and fixed costs in its format.
◦ It distinguishes manufacturing costs from nonmanufacturing costs.
◦ It calculates gross margin.

Question 2

Which of the following statements is true of gross-margin format of the income statement?
◦ It distinguishes between manufacturing and nonmanufacturing costs.
◦ It distinguishes variable costs from fixed costs.
◦ It is used for variable costing.
◦ It calculates the contribution margin from sales.

Title: Which of the following statements is true of gross-margin format of the income statement?
Post by: medine on Mar 6, 2021

Answer 1

It distinguishes between variable and fixed costs in its format.

Answer 2

It distinguishes between manufacturing and nonmanufacturing costs.