Contribution margin income statement differs in this way that it only deduct the variable cost from sales to point out that how much is any unit of product is contributing towards recovery of fixed cost while normal income statement don't show this information.
Income statment used in financial reporting just shows the income and expenses while contribution margine income statement is different in this sence that it distributes the costs in fixed and variable costs and also guides the management to find out the number of units which must be produce to acheive breakeven which means to fully recover fixed costs.
Both statements are different in this sense that in contribution margin statement expenses are classified as variable and fixed expenses while this is not done in normal income statement.
Income statement in financial reporting is different in this sense that in that income statement all expenses and incomes are shown as incomes and expenses and there is no classification of fixed expenses or variable expense while in contribution margin income statement expenses are shown in this way that separate the fixed expenses from variable portion of expenses.
"Do the term financial reporting and financial statement mean the same thing?"
No they do not mean the same thing. Financial reporting is the more indept report. A financial statment are a subset of the total information in the financial report.
Statement of Cash Flows
Balance sheet Income statement Statement of changes in equity Statement of cash flows Notes to the financial statements
The results of the accounting process are the 5 core financial sections: Balance sheet Income statement Statement of changes in equity Statement of cash flows Notes to the financial statements.
Value-Added reporting provides a better measure of the wealth produced by the firm; and this nature of reporting is particularly useful to users of the financial statements because it gives a breakdown of how the wealth of the entity is made up and how it is attributed to the relevant stakeholders.
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Four financial statements: 1 - Income statment 2 - Balance sheet 3 - Cash flow statement 4 - Statement of owners equity income statement shows the income of current period, balance sheet shows overall performance till date, cash flow shows the different streams of cash inflows and outflows and owners equity statement shows the total contribution of owners.
1. Contribution approach income statement is different from simple income statement in this sense that in contribution margin approach variable costs are deducted from revenues to find out how much any sale of unit of product is contributing towards recovery of fixed cost of product.
A common size financial statement measure the relationship of different items of financial statement with a common variable (net sales in case of common size income statement). I helps to analyze business performance effectively. It is especially useful in comparing various variables of companies of different sizes and scopes.
-statement of financial position, -statement of profit and loss and other comprehensive income, statement of cash flows, -statement of change in equity, -Notes to the account