Question

The contribution income statement: A. Reports gross margin B. Is allowed for external reporting to shareholders C. Categorizes costs as either direct or indirect D. Can be used to predict future profits at different levels of activity

Answer 1

Answer:

The answer is D. Can be used to predict future profits at different levels of activity

Explanation:

The contribution income statement  is a company’s financial statement that indicates how the revenue is transformed into the net income.  Income statements should help investors and creditors determine the past financial performance of the enterprise, predict future performance, and assess the capability of the business to generate future revenue streams through the reporting of income and expenses.