The Choice of the Absorption or Contribution Approach Affects a Firm's

question 63

Multiple Choice

The choice of the absorption or contribution approach affects a firm's contribution margin because _____.

• A)contribution margin is higher if the contribution approach is used
• B)contribution margin is lower if the contribution approach is used
• C)contribution margin is independent of the approach
• D)none of these answers is correct

---

Definitions:

Mary Parker Follett

An early 20th-century social worker, management consultant, and pioneer in the fields of organizational theory and organizational behavior.

Walter A. Shewhart

A pioneering figure in the field of quality control, known for developing the concepts of statistical process control and the control chart.

W. Edwards Deming

An American engineer, statistician, professor, author, lecturer, and consultant, known for his work in the field of quality management and the Deming Cycle (Plan-Do-Check-Act).

Kaoru Ishikawa

A pioneer of quality management processes in Japan and the developer of the cause-and-effect diagram, also known as the "Ishikawa" or "fishbone" diagram.