On an Income Statement Prepared with a Direct Costing Approach,the

question 15

Multiple Choice

On an income statement prepared with a direct costing approach,the excess of sales over the cost of goods sold,based on variable costs only,is referred to as

• A) the marginal gross profit on sales.
• B) the manufacturing margin.
• C) the marginal income on sales.
• D) the contribution margin.

---

Definitions:

Population Variances

The measure of how data points in an entire population are spread out.

Population Variances

Measures of the dispersion of a population data set, reflecting how much the members of the population differ from the population mean.

Ratio

A quantitative relationship between two numbers, indicating how many times one value is contained or can contain the other.

Sample Variances

A measure of the variance (spread or variability) within a sample data set.