A line on the income statement that indicates what a department has left after covering cost of goods and sold and direct expenses is:

Question

Quizplus · Accepted Answer

The contribution margin is the amount remaining from sales revenue after variable expenses have been deducted, which is used to cover fixed costs and then to provide profit. It specifically relates to the income left after covering the cost of goods sold and direct expenses, making it the correct choice in this context.

A Line on the Income Statement That Indicates What a Department