Introduction to 1e: Income Statement

This lesson discusses the income statement as used in managerial accounting. It requires an understanding of the distinction between variable and fixed cost.

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Learning Objectives

After completing this lesson, you should be able to

• differentiate between operating income used in managerial accounting and net income used in financial accounting; and
• recognize the traditional/Generally-Accepted-Accounting-Principles format of the income statement used in financial accounting and the contribution format income statement often used in managerial accounting.

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