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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 companys 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....
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- Fall '10
- Managerial Accounting