When a manufacturer prepares a contribution margin income statement, Cost of Goods Sold is always a variable cost.

Name: When a manufacturer prepares a contribution margin income statement, Cost of Goods Sold is always a variable cost.
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While the cost of goods sold may include variable costs, it may also include fixed costs (such as depreciation or rent for a manufacturing facility). Therefore, it is not always a variable cost on a contribution margin income statement.

When a Manufacturer Prepares a Contribution Margin Income Statement, Cost