In preparing an income statement that measures contribution margin and responsibility margin for a responsibility center, two

Question:

In preparing an income statement that measures contribution margin and responsibility margin for a responsibility center, two concepts are applied in classifying costs. One is whether the costs are variable or fixed. The other is whether the costs are:

a. Product costs or period costs.

b. Traceable to the responsibility center.

c. Under the control of the manager.

d. Transfer prices.

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