The contribution approach offers several benefits to decision makers.Which of the following is NOT a benefit of this approach?
A)This approach makes it easier to understand the impact of changes in sales demand on operating income.
B)This approach stresses the role of fixed costs in operating income.
C)This approach is used with CVP analysis.
D)This approach is accepted by U.S.Generally Accepted Accounting Principles.

Question

Quizplus · Accepted Answer

The contribution approach is not an accounting principle and therefore it is not accepted by U.S. Generally Accepted Accounting Principles.

The Contribution Approach Offers Several Benefits to Decision Makers