Which of the Following Appears as a Line Item in a Contribution

question 142

Multiple Choice

Which of the following appears as a line item in a contribution margin income statement?

• A) Gross profit
• B) Total cost of goods sold
• C) Operating income
• D) Total selling and administrative expenses

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Definitions:

Account Category

The classification of accounts into different types, such as assets, liabilities, equity, revenue, and expenses, to organize financial information effectively.

Assets

Economic resources or valuable items owned by a business, capable of being converted into cash or used in generating revenue.

Liabilities

Financial obligations a company owes to outside parties, such as loans or accounts payable.

Furniture

Movable articles intended to support various human activities such as seating, eating, and sleeping, often used to outfit a living or working space.