In the Variable Costing Income Statement, Deduction of Variable Selling

question 29

Multiple Choice

In the variable costing income statement, deduction of variable selling and administrative expenses from manufacturing margin yields

• A)differential margin
• B)contribution margin
• C)gross profit
• D)marginal expenses

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Definitions:

Principal Diagnosis

The main condition diagnosed at the end of a hospital stay or health care encounter that primarily motivated the treatment.

ATC

Average Total Cost, the sum of all costs divided by the quantity of output produced, a key concept in economics for understanding profitability at different production levels.

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing full industry adjustment.

Output

The overall output of products or services from a business, industry, or national economy.