Which of the Following Items Appears on a Variable Costing

question 17

Multiple Choice

Which of the following items appears on a variable costing income statement but not on a full costing income statement?

• A)Sales
• B)Gross margin
• C)Net income
• D)Contribution margin

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Definitions:

Vertical Specialization

Vertical specialization refers to the degree to which tasks within an organization are subdivided into separate jobs.

Mechanistic

Describes organizational structures or systems that are highly formal, centralized, and governed by strict procedures and hierarchies.

Organic

Characterizing organizations or systems that are flexible, adaptive, and decentralized in nature.

Horizontal Specialization

Refers to the division of labor where tasks are subdivided into smaller, specialized tasks across a horizontal plane within an organization.