Alternative Income statements

Week 4 DQ 1 Due By Friday—Alternative Income Statements

Please respond to the following discussion question by replying to this thread.  Your response should fully address all elements of the question and be a minimum of 300 words long.

Absorption versus variable income statements are discussed in Appendix A of Chapter 19.  These statements are also called alternative income statements in the accounting profession.

What are the two types of alternative income statements?   What are some examples of how alternative income statements are used in decision making? 

What is cost behavior and how does it impact a financial analysis?  What processes does your company or a previous employer use to analyze cost behavior?

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