The contribution margin format income statement is not widely used for external financial reporting,but is allowed by GAAP.

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The contribution margin format income statement is primarily used for internal management purposes and is not typically used for external financial reporting, nor is it specifically allowed or disallowed by GAAP for external reporting. GAAP focuses on a traditional income statement format that separates operating and non-operating activities.

The Contribution Margin Format Income Statement Is Not Widely Used