Answer:
C) No Yes
Explanation:
When an income statement is prepared using absorption costing then, firstly revenue from sales is shown, then cost of goods sold will be shown, which includes direct fixed cost + Variable direct cost, that is cost related to production from this we get gross margin after that selling and administration expenses are deducted and we get operating profit, in income statement using absorption costing there is no, contribution margin, only gross margin and net operating income.
Sales
Less: Cost of goods sold
Gross Margin
Less: Administrative Cost
Net Operating Margin
Therefore Correct option is
C) No Yes
