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23. Select the incorrect statement regarding the contribution margin income statement. 1.Assuming no change in fixed costs, a $1 increase in contribution margin will result
23. Select the incorrect statement regarding the contribution margin income statement.
1.Assuming no change in fixed costs, a $1 increase in contribution margin will result in a $1 increase in profit. | |
2.The contribution margin approach requires that all costs be classified as fixed or variable. | |
3.Contribution margin represents the amount available to cover product costs and thereafter to provide profit. | |
4. The contribution margin approach for the income statement is unacceptable for external reporting. |
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