Unformatted text preview: Q5-8) (a) Depreciation on buildings – committed (b) Advertising – discretionary (c) Research – discretionary (d) Long-term equipment leases – committed (e) Pension payments to the company’s retirees – committed (f) Management development and training – discretionary Q5-14) A contribution income statement provides managers with an income statement that clearly distinguishes between fixed and variable costs and therefore facilitates planning, control, and decision-making. A traditional format concentrates on the production, sales, and administration. Q5-15) A contribution margin is the amount remaining from sales revenue after variable expenses have been deducted. This amount contributes toward covering fixed expenses and then toward profits for the period....
View Full Document
- Fall '10
- Managerial Accounting, software company, total variable costs, unit variable costs