The major categories or captions that would appear on an income statement prepared in the variable costing format are as follows: Contribution margin Fixed costs Manufacturing margin Operating income Sales Variable cost of goods sold Variable selling and administrative expenses a. Arrange these captions in the proper order in accordance with the variable costing concept. b. Which of the captions represents: 1. The difference between sales and the total of all the variable costs and expenses. 2. The remaining amount of revenue available for fixed manufacturing costs, fixed expenses, and net income

Question

Business

Nataly Madden

13 September, 09:41

The major categories or captions that would appear on an income statement prepared in the variable costing format are as follows: Contribution margin Fixed costs Manufacturing margin Operating income Sales Variable cost of goods sold Variable selling and administrative expenses a. Arrange these captions in the proper order in accordance with the variable costing concept. b. Which of the captions represents: 1. The difference between sales and the total of all the variable costs and expenses. 2. The remaining amount of revenue available for fixed manufacturing costs, fixed expenses, and net income

+3

Answers (1)

Know the Answer?

Manuel Olsen · Answer 1

Income Statement

Variable Costing

Sales

Variable cost of goods sold

Manufacturing margin

Variable selling and administrative expenses

Contribution margin

Fixed costs

Net income

b. 1. Manufacturing margin=Sales less Variable cost of goods sold

The difference between sales and the total of all the variable costs and expenses is called Contribution Margin.

The remaining amount of revenue available for fixed manufacturing costs, fixed expenses, is called net income.