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:

General Creditor

An individual or entity that is owed a debt that is not secured by collateral, leaving them with no special rights to any specific property of the debtor in case of default.

Preferred Claim

A type of claim that is given priority, especially in bankruptcy proceedings, ensuring that it is paid out before other types of claims.

Article 9

A provision of the Uniform Commercial Code that governs secured transactions involving personal property, establishing a legal framework for creating and enforcing security interests.

Class of Goods

A grouping or category of goods that share similar characteristics or are aimed at a specific market segment, often used for classification in legal, commercial, or logistical contexts.