Select the Appropriate Classification of Each of the Costs Listed

question 91

Multiple Choice

Select the appropriate classification of each of the costs listed below.* Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Direct labour for units sold

• A)deduction from Revenue in calculation of Contribution Margin
• B)deduction from Revenue in calculation of Gross Margin
• C)deduction from Revenue in calculation of both Contribution Margin and Gross Margin
• D)deduction from both Contribution Margin and Gross Margin in calculating Operating Income

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Definitions:

Carrying Value

The book value of an asset or liability on a company's balance sheet, representing its original cost adjusted for any depreciation, amortization, or impairment.

Book Value

The value of an asset as recorded in the financial statements, calculated by subtracting any accumulated depreciation from the asset's original cost.

Straight-Line Method

Method that allocates an equal amount of depreciation over an asset’s period of usefulness.

Semiannual

Pertaining to a period of six months or occurring twice a year.