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

question 192

Multiple Choice

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

• A) It is used for absorption costing.
• B) It distinguishes between variable and fixed costs in its format.
• C) It distinguishes manufacturing costs from nonmanufacturing costs.
• D) It calculates gross margin.

---

Definitions:

Subsystem Controls

Mechanisms put in place to monitor and regulate the operations of individual components of a larger system to ensure efficiency and effectiveness.

Managerial

Pertaining to the activities, responsibilities, and skills involved in managing an organization.

Production

The process of creating goods or services by combining various inputs such as labor, materials, and technology to meet consumer demand.

Technical

Relating to the practical application of scientific knowledge, especially in industrial or commercial objectives, often requiring specific expertise.