Absorption costing is: used to prepare an income statement in which cost behavior is emphasized. also called direct costing. required for external financial/tax reporting. a useful tool for internal decision-making. Which of the following is FALSE about the contribution format income statement? It is the format typically prepared under absorption costing. It is also called "cost behavior-based" income statement. It is not an acceptable format for the company's external financial reporting purpose. It is useful for a manager's internal decision-making, such as the CVP analysis