Which of the Following Statements About Contribution Format Income Statement

question 56

Multiple Choice

Which of the following statements about contribution format income statement is incorrect?

• A) It is used as an internal planning and decision making tool
• B) It facilitates cost volume profit analysis
• C) It separates costs into fixed and variable first deducting variable expenses from sale to obtain contribution margin
• D) It emphasizes the function of production, administration and sales with no distinguish between fixed and variable costs

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