The Contribution Margin Format Income Statement

question 38

Multiple Choice

The contribution margin format income statement:

• A)results in a larger amount of operating income than the traditional income statement format.
• B)uses a behavior pattern classification for costs rather than a functional cost classification approach.
• C)is most frequently used for financial statement reporting purposes.
• D)emphasizes that all costs change in proportion to any change in revenues.

---

Definitions:

Net Present Value

A financial metric that calculates the present value of all future cash flows of a project minus the initial investment.

Capital Investment

The spending of money by a business on physical assets like property, industrial buildings, or equipment to enhance its operations and profitability.

Domestic Bond

A bond issued within a country and denominated in the currency of that country, typically purchased by residents of the country.

Multinational Technology

Technology products, services, or innovations that are designed, developed, and deployed across multiple countries.