which of the following would be reported on a variable costing income statement?\nmultiple choice\ngross…

which of the following would be reported on a variable costing income statement?\nmultiple choice\ngross profit\ncost of goods available for sale\ntotal cost of goods sold\ncontribution margin\nwork - in - process inventory

which of the following would be reported on a variable costing income statement?\nmultiple choice\ngross profit\ncost of goods available for sale\ntotal cost of goods sold\ncontribution margin\nwork - in - process inventory

Answer

Brief Explanations:

Variable costing income statement focuses on contribution margin. Contribution margin is calculated as sales minus variable costs. Gross profit is used in absorption costing. Cost of goods available for sale and work - in - process inventory are balance sheet or cost of goods sold related items not directly on the variable costing income statement in the way contribution margin is. Total cost of goods sold in variable costing is variable cost of goods sold, but the key line item is contribution margin.

Answer:

Contribution margin