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Which of the following is TRUE about the contribution income statement format? The net income for contribution income format and functional income statement is different
Which of the following is TRUE about the contribution income statement format? The net income for contribution income format and functional income statement is different due to the different classification of costs. Cost of goods sold will equal variable costs. There is no line item for gross profit, rather the first subtotal is the result of revenues minus variable costs. Functional income statements are more useful for internal management decisions than Contribution income statements
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