Which of the Following Observations Is True

question 91

Multiple Choice

Which of the following observations is true?

• A) Variable costs are irrelevant in the contribution-margin approach.
• B) Both the full-cost approach and the contribution-margin approach yield similar decisions.
• C) The contribution-margin approach ignores some costs to get results.
• D) Top management always prefers the contribution-margin approach.
• E) In the contribution-margin approach, all costs are allocated to products, customers, or other categories.

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Definitions:

Somatic Nervous System

The somatic nervous system is part of the peripheral nervous system responsible for carrying motor and sensory information both to and from the central nervous system.

Interneurons

Neurons located in the central nervous system that transmit impulses between sensory and motor neurons.

Peripheral Nervous System

The part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, involved in transmitting sensory information and motor signals.

Autonomic Nervous System

The part of the nervous system that controls involuntary bodily functions, such as heartbeat, digestion, and breathing.