In order to prepare a contribution format income statement:
A) costs must be separated into manufacturing and selling, general, and administrative costs.
B) costs must be separated into cost of goods sold and operating expenses.
C) costs must be separated into variable and fixed costs.
D) costs must be separated into mixed, variable and fixed costs.

Question

Quizplus · Accepted Answer

A contribution format income statement separates costs into variable and fixed costs to highlight the contribution margin, which is sales minus variable costs.

In Order to Prepare a Contribution Format Income Statement