The income statement presentation that helps managers plan and make decisions shows the distinction between
A)sunk and opportunity costs.
B)variable and fixed costs.
C)controllable and non-controllable costs.
D)discretionary and outlay costs.

Question

Quizplus · Accepted Answer

The presentation that helps managers plan and make decisions distinguishes between variable and fixed costs. This is because variable costs fluctuate with changes in production or sales, while fixed costs remain constant regardless of the level of production or sales. By understanding this distinction, managers can make informed decisions on pricing strategies, product mix, and other key operational decisions. The other options may be included in an income statement, but they are not the primary focus of a managerial income statement presentation.

The Income Statement Presentation That Helps Managers Plan and Make