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:

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing sensory information and controlling bodily functions.

Interneurons

Specialized neurons that act as the middle link, connecting sensory and motor neurons in the nervous system.

Synapses

The junctions between neurons where nerve impulses are transmitted from one neuron to another through chemical or electrical signals.

Neurotransmitter

Chemicals in the brain that transmit signals from one neuron to another across synapses.