The financial statement that organizes costs by their behavior instead of by their function is the

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Business

Elise

14 May, 06:20

The financial statement that organizes costs by their behavior instead of by their function is the

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Answers (1)

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Payton Stevens · Answer 1

The correct answer is: contribution margin income statement.

Explanation:

The contribution margin income statement organizes costs by behavior and not by function thus it is not used for financial reporting. The variable expenses are deducted from sales to be recorded at a contribution margin. Fixed expenses are subtracted from the net profit obtained at the end of the accounting period.