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
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
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 24BEA: Variable-Costing Income Statement Refer to the data for Osterman Company on the previous page....
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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?
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