On an Income Statement Prepared with a Direct Costing Approach

question 97

Multiple Choice

On an income statement prepared with a direct costing approach, the excess of sales over the cost of goods sold, based on variable costs only, is referred to as

• A)the manufacturing margin.
• B)the marginal gross profit on sales.
• C)the marginal income on sales.
• D)the contribution margin.

---

Definitions:

Personal Attack

A personal attack involves criticizing or demeaning someone on a personal level rather than addressing the argument or the issue at hand.

"Nice" Customer

refers to a consumer who is particularly pleasant, agreeable, or easy to serve in a business context.

Impossible Customer Requests

Requests from customers that are unfeasible or unrealistic for businesses to fulfill.

Company Policy

Guidelines developed by an organization to govern its actions, ensuring compliance and standard operation procedures.