In an Income Statement Prepared Using the Variable Costing Method

question 127

Multiple Choice

In an income statement prepared using the variable costing method, which of the following terms should appear? $\begin{array}{lll}&\text { Gross Profit (margin) } & \text { Net income } \\\text { A) } & \text { Yes } & \text { Yes } \\\text { B) } & \text { Yes } & \text { No } \\\text { C) } & \text { No } & \text { No } \\\text { D) } & \text { No } & \text { Yes }\end{array}$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Amortization Period

The total time period over which a loan or mortgage is scheduled to be repaid through regular payments.

Monthly Payment

The amount of money that needs to be paid each month, often used in the context of loans or leases.

Principal Portion

The part of a loan payment that reduces the outstanding balance owed on the loan.

Compounded Monthly

Interest calculation method where interest is added to the principal on a monthly basis.