Responsibility margin is useful in evaluating the consequences of short-run marketing strategies,while contribution margin is more useful in evaluating long-term profitability.

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Quizplus · Accepted Answer

This statement is false. Responsibility margin and contribution margin both provide information on short-term and long-term profitability. Responsibility margin focuses on the contribution and costs associated with specific products or product lines, while contribution margin focuses on the profitability of individual products or services. Both metrics can be used in evaluating short-term and long-term profitability.

Responsibility Margin Is Useful in Evaluating the Consequences of Short-Run