The contribution margin approach to performance evaluation is flawed because focusing on only the contribution margin ignores

Question:

“The approach to performance evaluation is flawed because focusing on only the ignores important aspects of performance.” Do you agree? Explain.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...