The Term Gross Margin Is Used in Reports Prepared Using

question 213

Multiple Choice

The term gross margin is used in reports prepared using:

• A)both absorption costing and variable costing.
• B)absorption costing but not variable costing.
• C)variable costing but not absorption costing.
• D)neither variable costing nor absorption costing.

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Definitions:

Income Tax Rate

The rate at which income is taxed for a person or a company.

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health.

Straight-Line Depreciation

This is a method of allocating an asset's cost evenly across its useful life.

Initial Investments

The initial amount of money that is put into a project, business, or investment.