The Contribution Margin Approach to the Income Statement

question 3

Multiple Choice

The contribution margin approach to the income statement:

• A)can be used only by manufacturing companies.
• B)shows a contribution margin rather than a net income figure at the bottom of the statement.
• C)organizes costs on a functional basis.
• D)is useful to managers in planning and decision making.

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Definitions:

Socialist Party

A political party advocating for socialism, which includes the belief in social ownership, democratic control of the means of production, and the political ideology focused on social equality.

Eugene Debs

was an American socialist, political activist, trade unionist, and one of the founding members of the Industrial Workers of the World, as well as a five-time Socialist Party of America presidential candidate.

Nationalize

The process by which a government takes ownership and control of a private industry or assets, typically for the purpose of redistributing wealth and maintaining essential services.

Conservation Movement

A progressive reform movement focused on the preservation andsustainable management of the nation’s natural resources.