Which of the Following Would You Not Find on a Traditional

question 23

Multiple Choice

Which of the following would you not find on a traditional income statement?

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

---

Definitions:

Direct Labor Hour

A measure of labor input, which is the time spent by workers directly manufacturing a product.

Direct Materials

Direct materials are raw materials that are directly used in the manufacturing process of a product and are easily traceable to it.

Total Cost

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Job Order Cost System

An accounting system that accumulates costs by individual jobs or batches rather than processes.