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Lesson 1e: Income Statement
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.
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.