Cost Classification on Income Statement Quiz

Absorption costing classifies expenses by function, while variable costing categorizes expenses by behavior and then may further classify them by function. (correct)

Absorption costing categorizes expenses first by behavior and then may further classify them by function, while variable costing classifies expenses by function.

Absorption costing does not classify expenses, while variable costing categorizes expenses by behavior and function.

Absorption costing and variable costing both categorize expenses only by function.

Product Contribution Margin (correct)

Period Costing Method

Total Contribution Method

Variable Nonmanufacturing Period Expenses

Total Cost of Goods Sold

Total Contribution Method (correct)

Product Contribution Margin

Variable Nonmanufacturing Period Expenses