If all units produced are sold during a period for a business, then the total expenses on a traditional income statement compared to those presented on a contribution margin income statement
A) are equal.
B) are greater.
C) are lower.
D) vary with the amount of sales.

Question

Quizplus · Accepted Answer

In both traditional and contribution margin income statements, total expenses are the same if all units produced are sold, as both statements account for all costs incurred.

If All Units Produced Are Sold During a Period for a Business