In preparing contribution margin income statements when will the total cost of goods sold be included as a variable cost?
A)When the business is a manufacturer.
B)It is always included for all businesses selling products.
C)When the business is a merchandising company.
D)The total cost of goods sold is never included in variable cost.

Question

Quizplus · Accepted Answer

In a merchandising company, the cost of goods sold is considered a variable cost because it varies directly with sales volume.

In Preparing Contribution Margin Income Statements When Will the Total