In the variable costing income statement, deduction of variable selling and administrative expenses from manufacturing margin yields
A)differential margin
B)contribution margin
C)gross profit
D)marginal expenses

Question

Quizplus · Accepted Answer

Contribution margin is calculated by deducting variable expenses (including variable selling and administrative expenses) from sales revenue, which is essentially what is described in the question.

In the Variable Costing Income Statement, Deduction of Variable Selling