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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.
DEFINITION of 'Income Statement'. A financial statement that measures a company's financial performance over a specific accounting period.Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities.he portion of the income statement that deals with operating items is interesting to investors and analysts alike because this section discloses information about revenues and expenses that are a direct result of the regular business operations.