Which of the Following Is TRUE of the Traditional Format

question 236

Multiple Choice

Which of the following is TRUE of the traditional format of the income statement?

• A) It is prepared under the variable costing method.
• B) It shows contribution margin as a line item.
• C) It is not allowed under GAAP.
• D) It is prepared under the absorption costing method.

---

Definitions:

Sampling Distribution

The probability distribution of a given statistic based on a random sample.

Central Limit Theorem

A statistical theory that states that the sampling distribution of the sample mean will approach a normal distribution as the sample size becomes larger, regardless of the shape of the population distribution.

Test Statistic

A calculated value from statistical test data used to determine whether to reject the null hypothesis in favor of the alternative hypothesis.

Average Amount

The sum of a set of numerical values divided by the count of values, typically used to find the central or typical value in a data set.