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.

---

Definitions:

John Adams

The second President of the United States (1797-1801), a Founding Father who played a leading role in independence from Britain and the drafting of the U.S. Constitution.

First Continental Congress

A convention of delegates from twelve of the thirteen American colonies in 1774, convened to respond to the British "Intolerable Acts."

Revolutionary War

The military conflict between Great Britain and its thirteen colonies in North America from 1775 to 1783, which resulted in the independence of the United States.

British Government

The central government of the United Kingdom, composed of the Executive (Cabinet and Prime Minister), the Legislature (Parliament), and the Judiciary.