A traditional income statement would separate product costs (COGS) and period costs (administration, selling, marketing, etc.). Can these costs also be classified as either variable or fixed? If so, could we use this information to prepare a contribution margin income statement? 

How is the same information presented in this type of managerial report? 

How could the information be used to make decisions?

Answer rating: 100% (QA)

Yes both product costs Cost of Goods Sold COGS and period costs administration selling marketing etc can be classified as either variable or fixed cos... View the full answer