If Johnson's Manufacturing presented a Financial Accounting Income Statement showing operating profit of $18 000,a Contribution Income Statement would show a different operating profit.

Question

Quizplus · Accepted Answer

Both the Financial Accounting Income Statement and the Contribution Income Statement ultimately report the same operating profit, but they organize and present the information differently. The Contribution Income Statement separates fixed and variable costs, while the Financial Accounting Income Statement focuses on the function of expenses (e.g., cost of goods sold, selling, and administrative expenses).

If Johnson's Manufacturing Presented a Financial Accounting Income Statement Showing