Respuesta :
Contribution approach Income statement- In this Statement Company's Variable costs deducted from Sales to arrive at contribution margin. After that Fixed expenses are deducted from contribution margin for arriving at profit for the period.
Basically , this statement separated fixed and variable expenses of a period to arrive at profit of the company.
It separates all the costs between fixed and variable whether it is manufacturing costs or Selling or administrative costs.
Traditional Approach Income statement- It is non other than profit and loss account of an entity. it reflects whether a company generating profit or making loss during a period.
It separates the Manufacturing costs from Selling and administrative costs. Manufacturing costs deducted from sales to arrive at gross profit. after that selling and administrative costs deducted from gross profit to arrive at net profit.
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