A contribution margin format income statement presents all costs by
A)behavior rather than by function.
B)function rather than behavior.
C)cost classification rather than behavior.
D)category rather than behavior.

Question

Quizplus · Accepted Answer

A contribution margin income statement is designed to separate costs into fixed and variable categories, which are behaviors. Therefore, costs are presented by their behavior rather than by function.

A Contribution Margin Format Income Statement Presents All Costs by