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Check all that are true about the difference between the internal (i.e., managerial) and external (i.e.,...

Check all that are true about the difference between the internal (i.e., managerial) and external (i.e., financial) versions of an organization's income statement.

() Variable non-manufacturing costs are deducted from gross margin and not from contribution margin.

() Variable non-manufacturing costs are deducted from contribution margin and not from gross margin.

() Fixed manufacturing costs are deducted from contribution margin and not from gross margin.

() Variable manufacturing costs are deducted from gross margin and not from contribution margin.

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Answer #1
Followings are true statements
a) Variable non-manufacturing costs are deducted from gross margin and not from contribution margin.
c) Fixed manufacturing costs are deducted from contribution margin and not from gross margin.
Internal(MANAGERIAL) is called absorption costing income statement and external one is called variable income statement
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