GAAP allows companies to use the contribution margin format for external reporting purposes if they so choose.

Name: GAAP allows companies to use the contribution margin format for external reporting purposes if they so choose.
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Question

Quizplus · Accepted Answer

GAAP (Generally Accepted Accounting Principles) requires companies to use a specific format for income statements that separates operating from non-operating activities and does not allow for the contribution margin format in external financial reporting.

GAAP Allows Companies to Use the Contribution Margin Format for External