The contribution-margin format is used for ________.
A) variable costing income statement
B) mixed costing income statement
C) absorption costing income statement
D) job order costing income statement

Question

Quizplus · Accepted Answer

The contribution-margin format is specifically used for the variable costing income statement. It separates the variable costs from the fixed costs and focuses on the contribution margin, which is the amount of revenue left over after deducting variable costs. This format is not used for mixed or absorption costing income statements, which include both variable and fixed costs in the cost of goods sold calculation. Job order costing income statements may use the contribution-margin format, but this is not necessarily the norm.

The Contribution-Margin Format Is Used for ________