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.