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  3. The normal income statement which constitutes one of the financial statement

The normal income statement which constitutes one of the financial statement

游客2025-06-19  14
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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