An Income Statement Is Prepared as an Internal Report

question 105

Multiple Choice

An income statement is prepared as an internal report.Under which of the following methods would the term contribution margin appear?

• A)no no
• B)no yes
• C)yes no
• D)yes yes

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Definitions:

Marginal Efficiency

Marginal efficiency relates to the additional utility or benefit gained from consuming or producing one more unit of a good or service.

Inventory Investment

The purchase of goods that are not sold immediately but are held for future sales, contributing to a company's assets.

Inventory

The total amount of goods and materials held in stock by a business or company.

Gross Investment

The total amount of money spent on acquiring, upgrading, or maintaining physical assets before depreciation is taken into account.