Question

, In an income statement prepared as an internal report using the variable costing method, which of the following terms should appear?
a.Gross Profit (Margin)
b.Operating Income

Answer 1

Answer:

The correct answer is a.Gross Profit (Margin)

Explanation:

In an income statement prepared as an internal report using the variable costing method should appear Gross Profit (Margin)

In variable costing method you get the gross profit making the difference between the amount of sales minus the variable cost