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

Question

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The full-cost vs. contribution-margin controversy involves different approaches to handling fixed and variable costs, but none of the statements A through D accurately describe these concepts. A) is incorrect because contribution margin accounting separates costs into variable and fixed, not assuming all costs are variable. B) is incorrect because while the presentation of costs and profits may differ between the two methods, the actual net profit of the company does not change. C) is incorrect because contribution margin and gross margin are not the same; gross margin subtracts only the cost of goods sold from sales, while contribution margin also considers variable costs. D) is incorrect because neither method is universally "better"; the choice depends on the specific context and needs of the business.

Regarding the Full-Cost Vs.contribution-Margin Controversy