An income statement in absorption costing follows the format of ___________?
Correct answer: A. Gross margin
- A. Gross margin
- B. sales margin
- C. inventory margin
- D. production margin
Explanation
An absorption-costing income statement classifies costs by function and reports sales less cost of goods sold to produce gross margin. A contribution-margin format is associated mainly with variable costing.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
The product capacity and costing, performance evaluation and regulatory requirements are the purposes of ___________?
The denominator of the fixed manufacturing cost rate is __________?
In Variable Costing Method, the fixed manufacturing cost in the calculation period is treated as _________?
In absorption costing, the contribution margin per unit, fixed operating and manufacturing costs are all the dependents of ___________?
The budgeted fixed manufacturing cost for per unit, which is used to measure per unit cost of supplying is called ___________?
An approach in which, the over allocated and under allocated is spread in, ending balance of finished goods control, is called ___________?