Which of the Following Terms Appears on an Income Statement

question 33

Multiple Choice

Which of the following terms appears on an income statement prepared using the contribution approach but NOT on an income statement using absorption costing?

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

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Definitions:

Export-Promotion Strategy

An economic policy aimed at encouraging domestic producers to export goods, typically through government support measures like subsidies, tax incentives, or easing regulatory requirements.

Import-Substitution Strategy

An economic policy aimed at reducing foreign dependency by local production of industrialized products.

Capital Available

The amount of financial resources a company or individual has available for investment or spending purposes.

Unionized Labor Force

A workforce that is organized into trade unions, which collectively negotiate wages, work hours, and working conditions.