Question

In this type of profitability analysis, the shared selling costs are allocated to individual units based on some type of cost allocation procedure: Question 29 options: the contribution approach to income statement analysis. the full-cost approach to residual income analysis. return on assets managed approach. the full-cost approach to income statement analysis. the contribution approach to residual income analysis.

Answer 1

The full-cost approach to income statement analysis.

Step-by-step explanation:

This form of cost analysis approach is mostly used because of the fact that it is objective to people who use it and also it is based on allocating shared cost per unit individual in costing activities of costing procedures.

The form of analysis also involves evaluating several line items within a statement, this is by following trends of other individual lines continuously in a certain time frame. Analysis of the income statement uses tools like horizontal cost, and other costs to run its analysis.