Question

Users can easily judge the impact on profits of changes in selling price, cost or volume when using an income statement constructed under the ______ approach. Multiple choice question.

Answer 1

The income statement constructed under the contribution approach, allow Users to easily judge the impact on profits of changes in selling price.

What is contribution approach ?

contribution approach  can be explained as the presentation format under the income statement, which involves  aggregation and deduction of variable cost from revenue.

 This  aggravation is done to arrive at a contribution margin and allow Users to easily judge the impact on profits.

Learn more about contribution approach  at;

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