One of the Best Arguments in Favor of the Full-Cost

question 15

Multiple Choice

One of the best arguments in favor of the full-cost approach to cost allocation is that:

• A)It is easy to establish defensible bases of allocation.
• B)It is less expensive and less time consuming than the contribution-margin approach.
• C)The allocation bases are not as arbitrary as in the contribution margin approach.
• D)Management in the territory (or whatever marketing unit is being analyzed)is made more aware of all costs - direct and indirect - than is true under the contribution-margin method.
• E)In the long run all costs are variable.

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Definitions:

Telomeres

The protective caps at the end of chromosomes that shorten with each cell division, associated with aging and cell lifespan.

Critical Length

Often refers to a specific threshold or dimension required for a particular process, reaction, or phenomenon to occur; the context determines its exact meaning.

Disease

A condition that disrupts normal physiological or anatomical functioning, often characterized by specific symptoms and signs.

Middle Adulthood

A stage of human development typically ranging from the mid-40s to the mid-60s, characterized by increased focus on personal and professional achievement, stability, and preparing for retirement.