On the Variable Costing Income Statement, Deduction of the Variable

question 44

True/False

On the variable costing income statement, deduction of the variable cost of goods sold from sales yields manufacturing margin.

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Definitions:

Selling Price

The price at which a product or service is sold to the purchaser, often determined by the cost of production, market demand, and competition.

Cost

The amount of money required to purchase something or the expense associated with creating a product or service.

Mark-up

The extra sum included in the goods' selling price to cover both overhead expenses and profit.

Selling Price

The amount of money for which a product or service is sold to a customer.