Question

In order to prepare a contribution format income statement, costs must be separated into: Multiple Choice

manufacturing and selling, general, and administrative costs.

cost of goods sold and operating expenses.

variable and fixed costs.

mixed, variable and fixed costs.

Answer 1

variable and fixed costs.

Step-by-step explanation:

The format of the contribution margin income statement is presented below:

Sales XXXXX

Less: Variable cost (XXXXX)

Contribution margin XXXXX

Less: Fixed cost (XXXXX)

Net income or loss XXXXX

Based on this we can concluded that the contribution margin income statement classified into two cost i.e variable and fixed cost