In a marketing cost analysis, the two means of allocating expenses are the:
A) fixed-cost method and the variable-cost method.
B) contribution-margin method and the full-cost method.
C) sales volume method and the market-share method.
D) internal environmental analysis and the external environmental analysis.
E) net-profit method and the net-sales method.

Question

Quizplus · Accepted Answer

The contribution-margin method and the full-cost method are two means of allocating expenses in marketing cost analysis. The contribution-margin method focuses on covering variable costs and contributing towards fixed costs and profit, while the full-cost method allocates all costs, both fixed and variable, to products or services to determine their profitability.

In a Marketing Cost Analysis, the Two Means of Allocating