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The normal income statement which constitutes one of the financial statement
The normal income statement which constitutes one of the financial statement
游客
2025-06-20
16
管理
问题
The normal income statement which constitutes one of the financial statements of a company, is financial income statement. So functional income statement is an income statement that segregates all costs by use ; it shows revenues less cost of goods sold ( gross margin) less selling and administrative expenses. This approach is useful for financial reporting purpose ; it provides outsider readers with information about company’s progress and about which functional areas are being emphasized. For management’s use in the decision-making process, however, an income statement that follows a cost behavior approach, often referred to as a Contribution Margin Income Statement, is more valuable. [br] When the management of a business makes some decisions, it often refers to the normal income statement because the normal income statement is more useful in that.
选项
A、Right
B、Wrong
C、Doesn’t say
答案
B
解析
从段落中最后一句话For management’s use in the decision-making process…as a Contribution Margin Income Statement, is more valuable可得知答案。
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