Which of the Following Statements About the Contribution-Margin Approach Is

question 1

Multiple Choice

Which of the following statements about the contribution-margin approach is FALSE?

• A) It is concerned with the amount contributed by an item or group of items toward covering fixed costs.
• B) This approach suggests that it is not necessary to consider all costs in all situations.
• C) Top management almost always finds this approach more useful than full-cost analysis.
• D) This approach frequently leads to data which suggest a different decision than might be indicated by the full-cost approach.
• E) It focuses on controllable costs-rather than on total costs.

---

Definitions:

Cell Division

The process by which a parent cell divides into two or more daughter cells, essential for growth, reproduction, and repair in organisms.

Eggs

The female reproductive cells in animals, including humans, or the oval or round objects produced by birds and some other animals, from which offspring can develop.

Sperm

The male gamete or reproductive cell involved in sexual reproduction, which carries genetic information to the ovum.

Dominant Genes

Genetic traits that are expressed in the phenotype even when only one copy is present, overshadowing recessive genes.