On a traditional income statement,all costs related to the production or purchases stage of the value chain that are associated with units sold,are listed:
A)above the contribution margin line.
B)above the gross profit line.
C)below the operating income line.
D)above the sales line.

Question

Quizplus · Accepted Answer

The gross profit line reflects the revenue earned from sales, minus the cost of goods sold (which includes all costs related to the production or purchases stage of the value chain that are associated with units sold). Therefore, these costs are listed above the gross profit line on a traditional income statement.

On a Traditional Income Statement,all Costs Related to the Production