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

Order Instructions

There will be two discussion questions listed below. By the due date assigned respond to one of the discussion questions and submit your response to the Discussion Area. Use the lessons and vocabulary found in the reading. Support your answers with examples and research and cite your sources using APA format.

Discussion Question 1:

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

Discussion Question 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?

Justify your answer.

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