Which of the Following Statements Is False Regarding the Contribution

question 21

Multiple Choice

Which of the following statements is false regarding the contribution margin income statement?

• A) It will group costs into categories based on their behavior (fixed or variable).
• B) It will include a subtotal called gross profit.
• C) It is not allowed for external reporting purposes.
• D) It is used by management to perform cost-volume-profit analysis.

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Definitions:

Ethics Double-check

A process of verifying that actions or decisions adhere to moral and ethical standards.

Problem Definition

The process of identifying and outlining a problem or challenge in order to find workable solutions or answers.

Availability Bias

A cognitive bias that influences people to overestimate the importance of information that is readily available to them, often leading to skewed perceptions and judgments.

Anchoring Bias

A cognitive bias where individuals rely too heavily on an initial piece of information to make subsequent judgments or decisions.