The contribution-margin approach focuses attention on _____ rather than on ______.
A) fixed costs; variable costs
B) gross margins; net margins
C) total costs; fixed costs
D) overheads; fixed costs
E) variable costs; total costs

Question

Quizplus · Accepted Answer

The contribution-margin approach focuses on variable costs as they directly impact the contribution margin, which is the difference between sales revenue and variable costs. Total costs and fixed costs are still taken into consideration but the main focus is on variable costs.

The Contribution-Margin Approach Focuses Attention on _____ Rather Than on ______

The Contribution-Margin Approach Focuses Attention on _ Rather Than on __