The text's "full-cost approach" to marketing cost analysis:
A) looks only at each customer or product's "contribution margin."
B) allocates all costs to products, customers, or other categories.
C) looks only at those costs which are directly related to particular alternatives.
D) is misleading and should be avoided.
E) All of these are correct.

Question

Quizplus · Accepted Answer

The full-cost approach allocates all costs to products, customers, or other categories, rather than just looking at each customer or product's "contribution margin." It also takes into account all costs, not just those directly related to particular alternatives. Option D is not correct, as the full-cost approach is a legitimate method of cost analysis. Option A is not correct as it only looks at one aspect of cost analysis. Option C is not correct as the full-cost approach takes into account all costs, not just those directly related to particular alternatives.

The Text's "Full-Cost Approach" to Marketing Cost Analysis