To compute contribution margin under variable costing,we deduct ________ and ________ from sales.
A)variable manufacturing costs; fixed manufacturing costs
B)variable selling costs; fixed manufacturing costs
C)variable administrative costs; variable selling costs
D)variable manufacturing costs; variable selling and administrative costs

Question

Quizplus · Accepted Answer

To compute contribution margin under variable costing, we deduct only the variable manufacturing costs and variable selling and administrative costs from sales. Fixed costs are treated as period costs and are not included in the calculation of contribution margin. Therefore, options A, B, and C are incorrect as they include fixed costs as well.

To Compute Contribution Margin Under Variable Costing,we Deduct ________ and ________

To Compute Contribution Margin Under Variable Costing,we Deduct and