Which of the following statements about the traditional format of the income statements is true?
A) Contribution margin is clearly displayed
B) Only manufacturing costs are deducted from sales to arrive at gross margin
C) Fixed costs and variable costs are segregated
D) The traditional format is used with variable, but not throughput, costing

Question

Quizplus · Accepted Answer

In the traditional income statement format, only manufacturing costs (cost of goods sold) are deducted from sales to arrive at the gross margin.

Which of the Following Statements About the Traditional Format of the Income