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A Manager Is Using a Full-Cost Approach, Then Allocating Fixed

Question 8

Multiple Choice

A manager is using a full-cost approach, then allocating fixed costs on the basis of sales volume as a way of analyzing marketing costs. This method could:


A) Result in a decrease of profitability for the entire company
B) Create an environment that limits the total sales that can be made
C) Create an environment where high-volume customers appear more profitable than they actually are
D) Create an environment where low-volume customers appear more profitable than they actually are
E) All of the above

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