One of the Major Difficulties in Developing the Income Statement

Multiple Choice

One of the major difficulties in developing the income statement approach in profitability analysis is

A) determining how to handle costs that are shared between organizational levels or sales types.
B) determining the cost of goods sold for individual organizational levels or sales types.
C) breaking down total sales into individual unit sales.
D) explaining how to interpret the results to senior managers.
E) figuring the investment in assets required to generate the net profit or profit contribution.