For retailers and service companies without inventory, operating income is different if a traditional income statement or a contribution margin income statement is prepared.

Question

Quizplus · Accepted Answer

Operating income is calculated after accounting for all operating expenses, and the method of income statement (traditional or contribution margin) does not change the final operating income figure; it only changes the format and presentation of how costs and revenues are categorized and displayed.

For Retailers and Service Companies Without Inventory, Operating Income Is