Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger

Exercise 22

In the keep-or-drop decision, the company will find which of the following income statement formats most useful?
A) A segmented income statement in the contribution margin format
B) A segmented income statement in the full costing format that is used for financial reporting
C) An overall income statement in the contribution margin format
D) An overall income statement in the full costing format that is used for financial reporting
E) Income statements are of no use in making this type of decision.