Which of the following is NOT true regarding an income statement organized according to thecontribution margin approach? Question 6 options: The contribution margin income statement is organized by cost behavior. Operating income will always be the same as operating income in a traditional income statement regardless of changes in inventory levels. All fixed costs, including fixed MOH, are expensed below the contribution margin line. The contribution margin is equal to sales revenue minus variable expenses.

An income statement is a financial statement that tracks both corporate revenue and expenses over a…

Answered: Which of the following is NOT true…

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 7E: The following data were adapted from a recent income statement of The Procter Gamble Company (PG):...

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Question

Which of the following is NOT true regarding an income statement organized according to the
contribution margin approach?

Question 6 options:

	The contribution margin income statement is organized by cost behavior.
	Operating income will always be the same as operating income in a traditional income statement regardless of changes in inventory levels.
	All fixed costs, including fixed MOH, are expensed below the contribution margin line.
	The contribution margin is equal to sales revenue minus variable expenses.