On an income statement prepared using variable costing, to calculate contribution margin, a company will subtract what from sales?
A)variable manufacturing costs.
B)variable cost of goods sold.
C)cost of goods sold.
D)variable manufacturing and operating costs.

Question

Quizplus · Accepted Answer

Contribution margin is calculated by subtracting all variable costs, including both variable manufacturing and operating costs, from sales.

On an Income Statement Prepared Using Variable Costing, to Calculate