On The Income Statement, Which Of The Following Would Be Classified As A Variable Cost?
a. Promotion Expense
b. Depreciation Expense
c. R&D Expense
d. Direct Labor Expense
Answer: D. Direct Labor Expense
Income Statement
The income statement shows the earnings of an entity in a specific period by comparing revenues generated and expenses incurred by the entity. It can also be used as an estimation tool to predict future organizational performance.