Which of the Following Statements Is Correct About the Difference

Multiple Choice

Which of the following statements is correct about the difference between contribution margin and gross margin?

A) Contribution margin and gross margin are equivalent.
B) Contribution margin is the difference between sales revenue and cost of goods sold.
C) Gross margin is the difference between sales revenue and variable costs.
D) Gross margin is used for external reporting,while contribution margin is used for internal reporting.