Respond to the following questions thoroughly, in 150-300 words for each question. Use your textbook as your first and major reference.
- What is the difference between a contribution income statement and a traditional income statement? Under what circumstances would a firm use each?
- 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?