Which of the Following Items Would Not Be Found on a Contribution

question 145

Multiple Choice

Which of the following items would not be found on a contribution format income statement?

• A) Fixed cost
• B) Variable cost
• C) Gross margin
• D) Net income

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Definitions:

Perpetual Inventory System

An inventory system that records changes in inventory levels after every transaction, ensuring continuous, real-time updates.

Accounts Payable

A liability account that records amounts owed by a company to suppliers or creditors for purchases made on credit.

Merchandise Inventory

Represents the goods a company intends to sell to customers that are purchased and stored, evaluated as a current asset on the balance sheet.

F.O.B. Shipping Point

A term used in shipping contracts indicating that the buyer takes ownership and responsibility for goods once they leave the seller's premises.