In an income statement prepared using the variable costing method, which of the following terms should appear?$\begin{array}{lll}&\text { Gross Profit (margin) } & \text { Net income } \
\text { A) } & \text { Yes } & \text { Yes } \
\text { B) } & \text { Yes } & \text { No } \
\text { C) } & \text { No } & \text { No } \
\text { D) } & \text { No } & \text { Yes }
\end{array}$

Question

Quizplus · Accepted Answer

In variable costing, "Gross Profit" is not a term typically used because costs are classified as variable or fixed, not as cost of goods sold and gross profit. However, "Net Income" is a term that appears in all income statements, including those prepared using variable costing.

In an Income Statement Prepared Using the Variable Costing Method