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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