Asked by Natcha Channara on Jul 13, 2024
Verified
Which of the following approaches to preparing an income statement includes a calculation of the gross margin? 
A) Choice A
B) Choice B
C) Choice C
D) Choice D
Gross Margin
A company's revenue minus its cost of goods sold, indicating how efficiently a company uses labor and supplies in production.
- Calculate and understand the contribution margin and its significance in cost-volume-profit analysis.
Verified Answer
NR
Naomi RuhmanJul 19, 2024
Final Answer :
B
Explanation :
Option B is a multi-step income statement that includes the calculation of gross margin. The other options (A, C, and D) are all single-step income statements that do not include the calculation of gross margin.
Learning Objectives
- Calculate and understand the contribution margin and its significance in cost-volume-profit analysis.