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

question 99

Multiple Choice

The contribution margin approach helps managers in short-term decision making because it ________.

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

---

Definitions:

DMM

Stands for Digital Multimeter, an instrument that measures electrical values such as voltage, current, and resistance.

Current Flow

The movement of electric charge carriers, like electrons, through a conductor or circuit, creating electric current.

Inductive Measurement

A technique for measuring a property or component by utilizing the principle of inductance or the change in inductance in a system.

Magnetic Field

An invisible field around magnetic materials where magnetic forces are exerted.