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.

---

Definitions:

Proposed Change

A suggestion put forward for consideration by others to make alterations or modifications to an existing situation or document.

Alternative Hypothesis

In statistical hypothesis testing, a statement that contradicts the null hypothesis and indicates a new theory or finding is expected.

Heart Attack Incidence

The frequency or rate at which new cases of heart attacks occur in a specified population over a certain period of time.

Week Days

The days of the week excluding the weekend, typically Monday through Friday.