A Variable Costing Income Statement Is Used for ________

question 29

Multiple Choice

A variable costing income statement is used for ________.

• A) filing income tax returns
• B) external reporting purposes
• C) determining the amount of gross profit
• D) internal decision-making purposes

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Definitions:

Total Revenue

The total amount of money generated by the sale of goods or services before any costs are subtracted.

Output Level

The amount of products or services generated by a company or economic system within a specified timeframe.

Marginal Revenue

The additional income earned from selling one more unit of a good or service.

Output

The volume of output in terms of products or services from a business, sector, or country within a designated timeframe.