Select the appropriate classification of each of the costs listed below.* Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Variable manufacturing overhead
A)deduction from Revenue in calculation of Contribution Margin
B)deduction from Revenue in calculation of Gross Margin
C)deduction from Revenue in calculation of both Contribution Margin and Gross Margin
D)deduction from both Contribution Margin and Gross Margin in calculating Operating Income

Question

Quizplus · Accepted Answer

Variable manufacturing overhead is deducted from revenue in the calculation of both Contribution Margin and Gross Margin, as it is a part of the cost of goods sold and affects both margins.

Select the Appropriate Classification of Each of the Costs Listed