객관식
Which of the following best describes the format of a single-step income statement for Hawkin for the month of December?
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4. Merchandising Operations
Single-step Income Statement
객관식
Based on the contribution format income statement, which of the following best describes the main difference between a single-step income statement and a contribution format income statement?
A
A single-step income statement separates operating and non-operating items, while a contribution format income statement does not.
B
A single-step income statement calculates gross profit, while a contribution format income statement does not.
C
A single-step income statement groups all revenues together and all expenses together, while a contribution format income statement separates variable and fixed costs.
D
A single-step income statement is only used for internal reporting, while a contribution format income statement is used for external reporting.
검증된 단계별 안내1
Understand the purpose of a single-step income statement: It groups all revenues together and all expenses together without distinguishing between operating and non-operating items or variable and fixed costs.
Understand the purpose of a contribution format income statement: It separates costs into variable and fixed categories, which is useful for internal decision-making and analyzing the impact of changes in sales volume on profitability.
Compare the two formats: A single-step income statement is simpler and focuses on total revenues and total expenses, while a contribution format income statement provides more detailed insights into cost behavior and contribution margin.
Recognize the key difference: The single-step income statement does not separate costs based on their behavior (variable vs. fixed), whereas the contribution format income statement does.
Conclude that the correct answer is: A single-step income statement groups all revenues together and all expenses together, while a contribution format income statement separates variable and fixed costs.
