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CVP income statement is arranged to show variable expenses, contribution margin and fixed expenses allowing a business to make cost volume profit decisions. CVP income statement is arranged to show variable expenses, contribution margin and fixed expenses allowing a business to make cost volume profit decisions.
Businesses report information in the form of financial statements issued on a periodic basis. GAAP requires the following four financial statements: Balance Sheet-statement of financial position at a given point in time. Income Statement-revenues minus expenses for a given time period ending at a specified date.