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Regarding the Full-Cost Vs.contribution-Margin Controversy

Question 69

Multiple Choice

Regarding the full-cost vs.contribution-margin controversy:


A) Contribution-margin assumes that all costs are variable.
B) The company's net profit will be different depending upon which of the two accounting methods is used.
C) Contribution margin and gross margin essentially are the same.
D) The full-cost method is the better of the two approaches.
E) None of these is correct.

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