The contribution format income statement is used as an internal planning and decision-making tool. Its emphasis on cost behavior aids cost-volume-profit analysis, management performance appraisals, and budgeting.

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The statement is true. The contribution format income statement focuses on separating costs into fixed and variable components and is useful for analyzing how changes in sales volume will impact profit margins. It is used internally by management for making decisions about pricing, product mix, and other strategic considerations.

The Contribution Format Income Statement Is Used as an Internal