A Manager Is Using a Full-Cost Approach,then Allocating Fixed Costs

question 58

Multiple Choice

A manager is using a full-cost approach,then allocating fixed costs on the basis of sales volume as a way of analyzing marketing costs.This method could:

• A)Result in a decrease of profitability for the entire company
• B)Create an environment that limits the total sales that can be made
• C)Create an environment where high-volume customers appear more profitable than they actually are
• D)Create an environment where low-volume customers appear more profitable than they actually are
• E)Do all of the above

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Definitions:

Women

Female human beings, often discussed in contexts involving gender equality, roles, and societal treatment.

Empowering Leadership

describes a style of leadership that aims to give employees more autonomy, authority, and confidence to be proactive and make decisions.

Teamwork

The combined action of a group, especially when effective and efficient, working together toward a common goal.

Decision-Making

The cognitive process of selecting a course of action from among multiple alternatives, typically involving critical thinking and analysis.