Regarding the Full-Cost Vs.contribution-Margin Controversy

question 41

Multiple Choice

Regarding the full-cost vs.contribution-margin controversy:

• A)The contribution-margin approach focuses on indirect cost allocation.
• B)Management decisions cannot be made on the basis of contribution-margin analysis alone.
• C)Contribution-margin tells us how much a marketing unit (territory,product)contributed to cover fixed costs,but it does not give us the net profit of the unit.
• D)All costs are allocated in the contribution-margin approach.
• E)The final answer for a territory or product is the same in either approach,but the contribution-margin approach gives us more detail.

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Definitions:

Read

The process of retrieving data from a source, such as a file or database.

BufferedReader

A class in Java used to read text from an input stream, buffering characters to provide efficient reading of characters, arrays, and lines.

PrintWriter

An output stream class in Java used for writing data to a destination, such as a file or console, with various methods for printing different data types conveniently.

FileInputStream

FileInputStream is a class in Java that allows for reading bytes from a file, commonly used to read data from files on the disk.