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

Question

Quizplus · Accepted Answer

When the business is a merchandising company, the total cost of goods sold is included as a variable cost because it is directly related to the number of units sold.

In Preparing Contribution Margin Income Statements When Will the Total