Which of the following statements is correct about the difference between contribution margin and gross margin? Contribution
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Question:
Which of the following statements is correct about the difference between contribution margin and gross margin?
Contribution margin and gross margin are equivalent.
Gross margin is used for external reporting, while contribution margin is used for internal reporting.
Gross margin is the difference between sales revenue and variable costs.
Contribution margin is the difference between sales revenue and cost of goods sold.
Related Book For
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
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