The profit in cost-volume-profit equations is the same as the net operating income on a contribution income statement.

Question

Quizplus · Accepted Answer

The profit in cost-volume-profit equations represents the amount by which revenue exceeds total variable and fixed costs. This is equivalently known as net operating income on a contribution income statement, which shows how much revenue is left over after subtracting variable expenses. Therefore, the statement that the profit in cost-volume-profit equations is the same as the net operating income on a contribution income statement is true.

The Profit in Cost-Volume-Profit Equations Is the Same as the Net