1. which of the following statements is true?\nthe foundation for this chapter is the incremental format…

1. which of the following statements is true?\nthe foundation for this chapter is the incremental format income statement.\nthe foundation for this chapter is the absorption format income statement.\nthe foundation for this chapter is the contribution format income statement.\nthe foundation for this chapter is the traditional format income statement.\n2. which of the following is not one of the “four levers” mentioned in the video?\nselling price\nunit sales (or sales volume)\nvariable cost per unit\nfixed cost per unit

1. which of the following statements is true?\nthe foundation for this chapter is the incremental format income statement.\nthe foundation for this chapter is the absorption format income statement.\nthe foundation for this chapter is the contribution format income statement.\nthe foundation for this chapter is the traditional format income statement.\n2. which of the following is not one of the “four levers” mentioned in the video?\nselling price\nunit sales (or sales volume)\nvariable cost per unit\nfixed cost per unit

Answer

Brief Explanations:

  1. In cost - volume - profit analysis, the contribution format income statement is often a fundamental tool. It separates costs into fixed and variable components which is crucial for understanding cost - volume - profit relationships.
  2. The four main levers in cost - volume - profit analysis are selling price, unit sales (sales volume), variable cost per unit, and fixed costs (total fixed costs, not fixed cost per unit as fixed cost per unit changes with volume).

Answer:

  1. The foundation for this chapter is the contribution format income statement.
  2. Fixed cost per unit