The format of the income statement most useful in decision-making is which of the following?
A)Absorption costing format
B)Traditional format
C)Contribution margin format
D)Single-step format

Question

Quizplus · Accepted Answer

The contribution margin format separates fixed and variable costs, enabling managers to make informed decisions about pricing, volume, and cost reductions. It provides a clearer picture of a company's profits and helps identify the break-even point, making it the most useful format in decision-making.

The Format of the Income Statement Most Useful in Decision-Making