On an Income Statement Prepared with a Direct Costing Approach,the

question 15

Multiple Choice

On an income statement prepared with a direct costing approach,the excess of sales over the cost of goods sold,based on variable costs only,is referred to as

• A) the marginal gross profit on sales.
• B) the manufacturing margin.
• C) the marginal income on sales.
• D) the contribution margin.

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Definitions:

Power of Attorney

A legal document that grants one individual (the agent) the authority to act on behalf of another (the principal) in legal or financial matters.

Legal Documents

Legal documents are formal written records that are drafted and executed in accordance with legal requirements, often used to establish rights, obligations, or agreements.

Durable Power

A legal document that grants a designated individual the authority to make decisions on another's behalf, typically in financial or healthcare matters, and often remains in effect even if the grantor becomes incapacitated.

Incapacity

The lack of ability, qualification, or strength to do something; specifically, the legal inability to enter into a contract.