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

question 51

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 shows data based on the cost behavior aspect of fixed and variable.
• 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:

Feedback

Information provided regarding aspects of one’s performance or understanding, which can be used as a basis for improvement.

Halo Error

A bias in performance appraisals where an evaluator's overall impression of an individual, positive or negative, influences the assessment of specific traits or behaviors.

Appraisal Politics

The influence of personal agendas, biases, and power dynamics within the performance appraisal process, often affecting the fairness and accuracy of evaluations.

Performance Appraisal

The process by which an employee's job performance is evaluated, typically annually, by their supervisor, encompassing feedback on achievements and areas for improvement.