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Unformatted text preview: functional format emphasizing the functions of production, administration, and sales in the classification and presentation of cost data. No attempt is make to distinguish between variable or fixed costs included under each function heading such as cost of goods sold, selling expenses, and administrative expense. Therefore, it does not report a contribution margin. In sum, the traditional income statement has serious limitations when used for management decision making, because the manager needs cost data organized in a format that will facilitate carrying out planning, control, and decision-making responsibilities. The CVP income statement has been developed in response to this need....
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This note was uploaded on 02/01/2012 for the course ACCT ACC560 taught by Professor Lorij.perez during the Spring '10 term at Strayer.
- Spring '10
- Managerial Accounting