Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 2 - Managerial Accounting and Cost Concepts - Questions - Page 51: 2-14

Answer

Contribution approach is an income statement format that organizes costs by their behavior, separates costs into fixed and variable categories. The contribution format income statement is mostly used as an internal planning and decision-making tool. The traditional income statements are useful for external reporting purposes.

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