The Contribution Margin Approach Helps Managers in Short-Term Decision Making

question 5

Multiple Choice

The contribution margin approach helps managers in short-term decision making because:

• A)it treats fixed manufacturing overhead as a product cost.
• B)it reports only mixed costs.
• C)it reports costs and revenues at present value.
• D)it isolates costs by behavior.

---

Definitions:

Hallucinations

Perceptions in a conscious and awake state in the absence of external stimuli which have qualities of real perception, often seen in psychiatric conditions or drug use.

Schizophrenia

A severe mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

DSM

Diagnostic and Statistical Manual of Mental Disorders; a manual published by the American Psychiatric Association that categorizes and defines mental disorders.

Overdiagnosis

The diagnosis of a disease or condition that is unlikely to cause harm during a person's lifetime, leading to unnecessary treatment and anxiety.