Which of the Following Statements Is True of Gross-Margin Format

question 11

Multiple Choice

Which of the following statements is true of gross-margin format of the income statement?

• A) It distinguishes between manufacturing and nonmanufacturing costs.
• B) It distinguishes variable costs from fixed costs.
• C) It is used for variable costing.
• D) It calculates the contribution margin from sales.

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Definitions:

Output Per Worker

A measure of productivity calculated by dividing the total output of goods or services by the number of workers.

Natural Resource Endowments

The stock of natural resources, like minerals, forests, and waterways, that a country possesses, which can influence its economic development.

Real Earnings

Earnings adjusted for inflation, depicting the real purchasing power of income.

Automated Production

involves the use of control systems and machinery to handle tasks in manufacturing with minimal human intervention.