Question

The amount of net income determined for an accounting period will be the same regardless of whether the income statement is prepared under a contribution margin format used in managerial accounting or the product costing format use in financial accounting. This statement is
a- true.

b- false.

Answer 1

This statement " The amount of net income determined for an accounting period will be the same regardless of whether the income statement is prepared under a contribution margin format used in managerial accounting or the product costing format use in financial accounting " is TRUE

Explanation:

Regardless of the medium used, the sum of net costs and revenue would be the same.

The discrepancy between the two systems depends on the categorisation of prices.

The balance sheet and cash flow report also take care of the capital expense on the income statement. Fixed expenses can be short or long-term liabilities on the balance sheet. Eventually, the declaration of Cash Flow shows any funds spent for fixed cost expenditures. In addition, rising spending and increasing income will support a company's overall goals.