Which of the following statements is false regarding the contribution margin income statement?

Question

Quizplus · Accepted Answer

The contribution margin income statement does not include a subtotal called gross profit. Instead, it focuses on separating costs into variable and fixed categories, and calculates the contribution margin (sales minus variable costs), which is not the same as gross profit (sales minus cost of goods sold). Gross profit is a term typically found in traditional income statements, not in contribution margin income statements.

Which of the Following Statements Is False Regarding the Contribution