Final answer:
Net income will always be identical on both traditional and CVP income statements since both methods calculate the same net income. The key difference lies in the presentation of costs and the informative value regarding the impact of sales volume, costs, and prices on profitability.
Step-by-step explanation:
When comparing a traditional income statement to a CVP income statement, the correct answer is c. net income will always be identical on both. This is because both methods ultimately calculate the same net income; however, they approach the calculation differently. A traditional income statement classifies expenses as either fixed or variable and then subtracts them from sales to determine net income. On the other hand, a CVP (Cost-Volume-Profit) income statement separates costs into variable and fixed but emphasizes the contribution margin, which is sales minus variable costs.
It's important to note that while the bottom line net income figure is the same on both types of statements, the CVP statement provides additional insights into how changes in sales volume, costs, and prices impact profitability.