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

Question

Quizplus · Accepted Answer

A contribution format income statement presents costs by behavior (variable, fixed, and mixed) rather than by function (such as production costs, selling expenses, and administrative expenses). This format shows the contribution margin and net income instead of gross profit.

A Contribution Format Income Statement Presents All Costs