Question

As compared to a traditional income statement format, an income statement organized by cost behavior does not include:As compared to a traditional income statement format, an income statement organized by cost behavior does not include:

Answer 1

Complete Question:

As compared to a traditional income statement format, an income statement organized by cost behavior does not include:

a contribution margin.

b cost of goods sold.

c operating income.

d revenues

Answer:

As compared to a traditional income statement format, an income statement organized by cost behavior does not include:

b cost of goods sold.

Explanation:

Cost behavior describes the classification of costs into four main patterns because of the way they respond to changing activity levels.  The four basic cost behavior patterns are fixed, variable, mixed (semi-variable), and step.  These cost behavior patterns remain valid within the relevant production and sales range or activity level or volume.