The contribution margin format income statement: Multiple Choice is most frequently used for financial statement reporting purposes. uses a behavior pattern classification for costs rather than a functional cost classification approach. emphasizes that all costs change in proportion to any change in revenues. results in a larger amount of operating income than the traditional income statement format.

uses a behavior pattern classification for costs rather than a functional cost classification approach.

Explanation:

The behavioral pattern of a cost refers to its relationship with the volume of production or sales. Costs that change along with the volume of production or sales are termed "variable costs" and costs that do not change are termed "fixed costs".

The Contribution Margin income statement classifies costs by whether they are variable or fixed which is why it is said that the format uses a behavioral for cost classification pattern not a functional one.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.