Full-Cost Approach Advocates Argue That

question 45

Multiple Choice

Full-cost approach advocates argue that:

• A) Many indirect costs can be assigned based on a demonstrated cost relationship
• B) Each unit territory, customer, or product) should bear only the direct costs which it incurred
• C) Prorating indirect costs is unnecessary and illogical
• D) Companies that use a contribution approach cannot uncover problem areas products, customers, or territories)
• E) The terms costs and expenses should be used interchangeably

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Definitions:

Holistic Critical Thinking

An approach to critical thinking that considers the whole situation, including context, emotions, and interconnectedness of elements.

Scoring Rubric

A detailed outline of performance expectations and grading conversions used to assess a variety of tasks or activities, focused on specific criteria.

Critical Thinking

Carefully analyzing and valuating a concern with the intention of deciding on a standpoint.

Holistic Critical Thinking

An approach to critical thinking that considers the whole context, including relationships, background, and environment, instead of just parts.