Which of the following would be the BEST reason to use the "full-cost approach" when comparing the performance of several product managers?

Which of the following would be the BEST reason to use the "full-cost approach" when comparing the performance of several product managers?



A. Unlike the "contribution-margin approach," it charges managers only for the expenses which are directly related to their operations.


B. This approach is required by Federal tax laws.


C. It charges each product manager only for those expenses which he controls.


D. It allows management to consider only the variable costs related to different products.


E. It makes each manager bear a share of the overhead expenses which were made for everyone's benefit.



Answer: E


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