Which of the Following Best Describes the Contribution Approach to the Income

question 67

Multiple Choice

Which of the following best describes the contribution approach to the income statement?

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

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Definitions:

Exclusionary Policies

Strategies or practices that deliberately leave out or discriminate against certain groups or individuals from participating or receiving benefits.

Prejudice

Preconceived opinion not based on reason or actual experience; bias or discrimination against certain groups.

Stereotypes

Oversimplified generalizations about groups of people that may lead to assumptions and judgments without regard for individual differences.

Stereotype

A widely held but fixed and oversimplified image or idea of a particular type of person or thing.