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

Question

Quizplus · Accepted Answer

The gross-margin format is used for absorption costing income statement, which shows the cost of goods sold as well as the gross margin (sales revenue minus cost of goods sold), providing a better insight into the profitability of the company. Variable costing income statement uses the contribution margin format, while mixed costing and standard costing income statements may use different formats depending on the company's needs.

The Gross-Margin Format Is Used for ________