The CVP income statement
A) is distributed internally and externally.
B) classifies costs by functions.
C) discloses contribution margin in the body of the statement.
D) will reflect a different net income than the traditional income statement.

Question

Quizplus · Accepted Answer

The CVP (Cost-Volume-Profit) income statement discloses contribution margin in the body of the statement, which is a key difference from traditional income statements. This format is specifically designed to aid in decision-making by highlighting the contribution margin, which is sales revenue minus variable costs.

The CVP Income Statement