Which of the Following Appears as a Line Item in a Contribution

question 25

Multiple Choice

Which of the following appears as a line item in a contribution margin income statement?

• A) Gross profit
• B) Cost of goods sold
• C) Operating income
• D) Selling and administrative expenses

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Definitions:

Discharged

Released or freed from a legal, financial, or other obligation.

Concurrent Conditions

Circumstances where two or more conditions must occur at the same time for a contract or agreement to be fully enforceable.

Conditions Precedent

Requirements that must be met before a contract becomes effective or before certain actions can be taken.

Conditions Subsequent

Conditions that must be met after a contract has been executed in order for the contract to remain effective.