Consider the following comments about absorption- and variable-costing income statements: I.A variable-costing income statement discloses a ﬁrm's contribution margin. II.Cost of goods sold on an absorption-costing income statement includes ﬁxed costs. III.The amount of variable selling and administrative cost is the same on absorption- and variable-costing income statements. Which of the above statements is (are) true?
A)I only.
B)II only.
C)I and II.
D)II and III.
E)I, II, and III.

Question

Quizplus · Accepted Answer

A variable-costing income statement shows the contribution margin, absorption costing includes fixed costs in COGS, and variable selling/admin costs are the same in both methods.

Consider the Following Comments About Absorption- and Variable-Costing Income Statements