A Major Reason for Using the Contribution Format Income Statement

question 3

Multiple Choice

A major reason for using the contribution format income statement is that

• A)it separates variable and fixed cost components.
• B)it increases information available to management.
• C)it allows management to establish what sales level is necessary to cover fixed costs.
• D)it indicates the sales mix of the company's products or services.

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Definitions:

Promises

Commitments or assurances given by a person or organization to do something or to behave in a certain way.

Corporate Social Responsibility

The practice of companies taking responsibility for the impact of their activities on customers, employees, communities, and the environment, often going beyond legal requirements.

Governmental Oversight

The monitoring, regulation, and examination of actions, decisions, or policies of government agencies or officials by higher authorities or bodies.

Moral Lapses

Instances where individuals fail to act in accordance with their ethical principles or societal norms.