1. When a firm is required to pay taxes on income, it is important to distinguish between after-tax (AT) income and before-tax (BT) income.

True

False

2. The management functions of planning, control, and decision making all are facilitated by an understanding of cost-volume-profit relationships

True

False

3.Which of the following does not typically appear on an income statement prepared by using a traditional format?

a. Cost of goods sold.

B.Contribution margin.

C.Gross margin. D.Selling expenses.

E.Administrative expenses.

4. Which of the following does not typically appear on a contribution income statement?

a. Net income

b. Gross margin

c. Contribution margin

d. Total variable costs

e. Total fixed costs