Contribution income statement-traditional income statement

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Reference no: EM131606107

Respond to the following questions thoroughly, in 150-300 words for each question.

1. What is the difference between a contribution income statement and a traditional income statement? Under what circumstances would a firm use each?

2. What is a company segment? Why would a firm want to divide itself into operating segments? Why would a firm want to measure profits by segment? How would common costs be allocated to each of a company’s segments?

Reference no: EM131606107

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