Activity-based management and costing cannot be applied to marketing in order to
A)identify the marketing activities needed to service each customer or order more appropriately.
B)determine the variability in marketing costs across customer types and distribution.
C)support activity-based management by encouraging the elimination of accounts with high processing costs.
D)eliminate plantwide discretionary fixed costs.

Question

Quizplus · Accepted Answer

Eliminating plantwide discretionary fixed costs is not a relevant application of activity-based management and costing to marketing, as these costs are related to the operation of the entire facility, rather than to specific marketing activities. A, B, and C are all relevant applications of activity-based management and costing to marketing, as they involve identifying, analyzing, and optimizing the costs and benefits of specific marketing activities.

Activity-Based Management and Costing Cannot Be Applied to Marketing in Order