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2. COMPONENTS AND FORMAT OF THE INCOME STATEMENTDanone and Kraft present their expenses by function, which is sometimes referred to “cost of sales” method.
One subtotal often shown in an income statement is gross profit or gross margin (that is revenue less cost of sales). <span>When an income statement shows a gross profit subtotal, it is said to use a multi-step format rather than a single-step format . The Kraft Foods income statement is an example of the multi-step format, whereas the Groupe Danone income statement is in a single-step format. For manufacturing and merchandising compa
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