Full-Cost Approach Advocates Argue That

Multiple Choice

Full-cost approach advocates argue that:

A) Many indirect costs can be assigned based on a demonstrated cost relationship
B) Each unit territory, customer, or product) should bear only the direct costs which it incurred
C) Prorating indirect costs is unnecessary and illogical
D) Companies that use a contribution approach cannot uncover problem areas products, customers, or territories)
E) The terms costs and expenses should be used interchangeably