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

question 142

Multiple Choice

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

• A) Gross profit
• B) Total cost of goods sold
• C) Operating income
• D) Total selling and administrative expenses

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Definitions:

Red Circle Rates

Pay rates that are higher than the typical range for a job or position, often given to retain employees with critical skills or experience.

Piece Rate

A payment method where workers are compensated based on the amount of work completed or products produced, rather than receiving a fixed hourly wage.

Wage Compression

A situation where differences in wages among employees in an organization become minimized, often due to external wage pressures or internal pay equity initiatives.

External Equity

The perception of fairness in compensation when comparing one's salary and benefits to those in similar positions in other organizations.