Which of the following statements about the contribution-margin approach is FALSE?

A. It focuses on controllable costs-rather than on total costs.
B. It is concerned with the amount contributed by an item or group of items toward covering fixed costs.
C. Top management almost always finds this approach more useful than full-cost analysis.
D. This approach frequently leads to data that suggest a different decision than might be indicated by the full-cost approach.
E. This approach suggests that it is not necessary to consider all costs in all situations.


Answer: C

Business

You might also like to view...

Marketing model drivers are key elements or factors required for a business to take root and grow in a particular country market environment

Indicate whether the statement is true or false

Business

Taylor, a cash basis architect, rents the building in which his office is located for $5,000 per month. He commenced his practice on February 1, 2019. In order to guarantee no rent increases during an 18-month period, he signed an 18-month lease and prepaid the $90,000 on February 1, 2019. How much can Taylor deduct as rent expense for 2019?

What will be an ideal response?

Business

The marketing research system gathers information for a specific situation facing the company, and it is unlikely that the other components of an MIS have the information needed for the specific situation

Indicate whether the statement is true or false

Business

Research on work teams shows that clear project goals:

a. Help improve team performance and internal team processes b. Lead to greater conflict c. Are not possible without a team leader d. Are the same as the team’s mission statement

Business