Which of the Following Would Be the BEST Reason to Use

question 121

Multiple Choice

Which of the following would be the BEST reason to use the "full-cost approach" when comparing the performance of several product managers?

• A) Unlike the "contribution-margin approach," it charges managers only for the expenses which are directly related to their operations.
• B) This approach is required by Federal tax laws.
• C) It charges each product manager only for those expenses which he controls.
• D) It allows management to consider only the variable costs related to different products.
• E) It makes each manager bear a share of the overhead expenses which were made for everyone's benefit.

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Definitions:

Itching

An uncomfortable sensation on the skin that provokes the desire to scratch, often caused by irritation, allergies, or infections.

Anus

The external opening of the anal canal.

Tongue

The muscular organ of the mouth that assists in the production of speech, contains the taste buds, and provides the ability to swallow.

Papillae Projections

Small, nipple-like structures on the surface of an organ, such as the tongue, that often contain taste buds.