Select the true statement from the list below, regarding the Contribution Format Income statement.

Multiple Choice

• The Contribution Format income statement is utilized only for external reporting purposes.

• The Contribution Format Income Statement is utilized for internal decisionmaking purposes.

• The format of the Contribution Format Income statement begins as: Sales minus Cost of Goods Sold equals Contribution Margin.

• The Contribution Format Income Statement could be prepared by someone external to the company just by using the reported GAAP Traditional Income Statement.