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:

Unfavorable Balance

A financial situation where expenses or payments are greater than earnings, income, or cash inflows, often relating to trade deficits.

Syndicate

A group of banks that work together to offer credit in order to reduce risk.

Single Bank

A banking model where a country or region is served by only one central banking institution, which manages monetary policy and banking regulations.

Required Credit

The minimum credit score or financial requirement needed by an individual to qualify for certain loans, services, or credit lines.