Please answer the following review question, circle the correct answers.

A. On the variable costing income statement, all of the fixed costs are deducted from the contribution margin.

*True

*False

B.In the variable costing income statement, deduction of variable selling and administrative expenses from manufacturing margin yields:

*gross profit

*contribution margin

*differential margin

*marginal expenses

C.The amount of income under absorption costing will be more than the amount of income under variable costing when units manufactured:

*equal units sold

*are equal to or greater than units sold

*are less than units sold

*exceed units sold