In Order to Prepare a Contribution Format Income Statement,costs Must

question 117

Multiple Choice

In order to prepare a contribution format income statement,costs must be separated into:

• A) manufacturing and selling, general, and administrative costs.
• B) cost of goods sold and operating expenses.
• C) variable and fixed costs.
• D) mixed, variable and fixed costs.

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Definitions:

Stock Ledger

A record that keeps track of the stock transactions of a company, including shares bought, sold, issued, and returned.

Materials Ledger

A detailed record that tracks the quantity and cost of materials on hand.

Work in Process Account

An account used to record the costs associated with incomplete products in the manufacturing process.

Cost Ledger

A subsidiary ledger that records individual costs associated with specific cost centers or cost objects.