A Contribution-Margin Income Statement Shows

question 55

Multiple Choice

A contribution-margin income statement shows:

• A) the contribution of each department to both fixed costs and profit.
• B) the effect of a marketing strategy on sales in different areas.
• C) the marginal costs for producing each new unit of a product.
• D) the effect of competitors' prices on the profits of a company.
• E) the contribution of external market factors to the profits or losses of the company.

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Definitions:

LLC

stands for Limited Liability Company, a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Joint Venture

A business arrangement in which two or more parties agree to pool resources for the purpose of accomplishing a specific task.

Partnership

A legal arrangement where two or more persons agree to share the profits of a business which they run together.

Malpractice

Failure of a professional to perform their duties to the required standard of care, resulting in harm to their client or patient.