When reporting on divisional performance,the format generally used is:
A)a contribution margin format
B)a gross profit format
C)a net profit format
D)none of the options gives the format generally used when reporting on divisional performance.

Question

Quizplus · Accepted Answer

The contribution margin format is generally used when reporting on divisional performance as it focuses on the profitability of each division by deducting variable costs from revenue. This allows for a clearer understanding of how each division contributes to the overall profitability of the company.

When Reporting on Divisional Performance,the Format Generally Used Is