A Contribution Margin Format Income Statement

Multiple Choice

A contribution margin format income statement

A) Is based on cost function rather than on cost behavior.
B) Allows managers to assess the impact of sales volume on operating income.
C) Both is based on cost function rather than on cost behavior and allows managers to assess the impact of sales volume on operating income.
D) Neither is based on cost function rather than on cost behavior nor allows managers to assess the impact of sales volume on operating income.