The Contribution-Margin Format of the Income Statement Distinguishes Manufacturing Costs

question 58

True/False

The contribution-margin format of the income statement distinguishes manufacturing costs from nonmanufacturing costs.

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Definitions:

Accounts Receivable

Unpaid customer dues to an enterprise for availed services or acquired goods.

Indirect Method

A technique used in cash flow statements to adjust net income for non-cash transactions and changes in working capital.

Income Statement

A financial report showing a company's revenues, expenses, and profit over a specific period.

Cash Dividends

Payments made by a corporation to its shareholders out of the company's profits.