When Absorption Costing Is Used for the Income Statement,the Difference

question 12

Multiple Choice

When absorption costing is used for the income statement,the difference between sales and ________ is gross margin.

• A) manufacturing cost of goods sold
• B) selling expenses
• C) selling and administrative expenses
• D) variable expenses

---

Definitions:

Tree Diagram

A graphical representation of all possible outcomes of a sequence of events, each branching out from the previous one.

Graphical Method

A technique of solving mathematical problems by representing them with graphs.

Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact by controlling and varying one or more variables.

Mutually Exclusive

Events that cannot occur at the same time, implying that the occurrence of one event excludes the occurrence of the other.