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; fixed manufacturing overhead costs
D) variable manufacturing costs; variable selling and administrative costs

Question

Quizplus · Accepted Answer

Contribution margin under variable costing only takes into account variable costs, so we deduct only variable manufacturing costs and variable selling and administrative costs from sales. Fixed costs are not included in the calculation of contribution margin.

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

To Compute Contribution Margin Under Variable Costing,we Deduct and