The choice of the absorption or contribution approach affects a firm’s contribution margin because _____.
A. contribution margin is higher if the contribution approach is used
B. contribution margin is lower if the contribution approach is used
C. contribution margin is independent of the approach
D. none of these answers is correct
Answer:B
The choice of the absorption or contribution approach affects a firm’s contribution margin because _____.
A. contribution margin is higher if the contribution approach is used B. contribution margin is lower if the contribution approach is used C. contribution margin is independent of the approach D. none of these answers is correct