Question: 1. What is the difference between a contribution income statement and a traditional income statement? 2. Under what circumstances would a firm use each? 3.

1. What is the difference between a contribution income statement and a traditional income statement?
2. Under what circumstances would a firm use each?
3. What is a company segment?
4. Why would a firm want to divide itself into operating segments?
5. Why would a firm want to measure profits by segment? How would common costs be allocated to each of a company's segments?

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1 Traditional income statement Also Known as profit and loss account a traditional income statement tells the whether a company is in profitLoss or not during a given Period It is a summary of how the ... View full answer

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