A line on the income statement that indicates what a department has left after covering cost of goods and sold and direct expenses is:

Question

Quizplus · Accepted Answer

The line on the income statement that indicates what a department has left after covering cost of goods and sold and direct expenses is the contribution margin. The gross margin is the difference between revenue and cost of goods sold, and the net income is revenue minus all expenses. Therefore, the best choice is C, the contribution margin.

A Line on the Income Statement That Indicates What a Department