The Contribution Margin Approach to the Income Statement

question 94

Multiple Choice

The contribution margin approach to the income statement:

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

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Definitions:

American Renaissance

A period in the mid-19th century characterized by a flourishing of American literature and art, emphasizing themes of national identity and culture.

Transcendentalist Movement

An intellectual movement in the mid-19th century that emphasized individualism, nature, and self-reliance, primarily in the United States.

Ralph Waldo Emerson

An American essayist, lecturer, philosopher, and poet who led the transcendentalist movement of the mid-19th century, advocating for individualism and the inherent goodness of people and nature.

Ban Alcohol

The prohibition of the manufacture, sale, and consumption of alcoholic beverages, notably practiced in the United States from 1920 to 1933.