Which of the following is the best reason to use the full-cost approach when comparing the performance of several product managers?
A. The full-cost approach makes each manager bear a share of the overhead expenses that were made for everyone's benefit.
B. The full-cost approach charges each product manager only for those expenses he or she controls.
C. Unlike the contribution-margin approach, the full-cost approach charges managers only for the expenses that are directly related to their operations.
D. The full-cost approach allows management to consider only the variable costs related to different products.
E. The full-cost approach is required by federal tax laws.
Answer: A
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