Which of the following is the format of the income statement most useful in decision-making?

Question

Quizplus · Accepted Answer

The contribution margin format is the most useful format for decision-making as it separates fixed and variable costs, allowing for better analysis of the profitability of different products or business segments. It also provides insight into the impact of changes in sales volume on profitability. The absorption costing format is more useful for external reporting purposes, while the traditional format is less detailed and provides less insight into the underlying profitability of the business. The single-step format is useful for small businesses with fewer revenue streams and cost categories.

Which of the Following Is the Format of the Income