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:

Self-employment Income

Income earned from conducting a business or profession as a sole proprietor, independent contractor, or freelancer, subject to self-employment tax.

Nondeductible Expense

A cost incurred by a taxpayer that cannot be deducted from income when calculating taxes owed.

Cash Distribution

The payment of earnings from a corporation or a fund to its shareholders or investors.

Rental Income

The money earned from renting out a property or real estate.