While Preparing a Contribution Margin Income Statement, the Costs Are

question 48

Multiple Choice

While preparing a contribution margin income statement, the costs are shown into which of the two categories?

• A) Direct materials and indirect materials
• B) Product and period
• C) Variable and fixed
• D) Avoidable and unavoidable

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Definitions:

Diversification

A strategy of investing in a variety of assets to reduce overall risk.

Expected Gain

The anticipated benefit or profit that arises from a specific action or investment.

Diversification

The process of spreading investment risks by acquiring a wide range of assets within a portfolio.

Expected Gain

A calculation or forecast regarding the potential benefits or profits that could be achieved in a specific situation or from a particular action.