Which of the Following Statements About the Contribution-Margin Approach Is

question 1

Multiple Choice

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

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

---

Definitions:

Unconditioned Responses

Automatic, natural reactions to stimuli that occur without prior learning or conditioning, such as reflex actions.

Conditioned Responses

Learned responses to a particular stimulus, conditioned through association during the learning process.

Conditioned Stimuli

In classical conditioning, a previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually triggers a conditioned response.

Cognitive Learning

A process involving mental operations that facilitate the acquisition and retention of knowledge, including thinking, understanding, and remembering.