Proponents of the full-cost approach to marketing cost analysis contend that:
A) the contribution-margin approach is the iceberg principle in action.
B) only direct expenses should be allocated to each marketing unit being analyzed.
C) the contribution-margin approach assumes all costs are variable.
D) allocation bases are arbitrary.
E) it is impossible to allocate indirect costs accurately among products.

Question

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The Answer of Proponents of the full-cost approach to marketing cost analysis contend that:
A) the contribution-margin approach is the iceberg principle in action.
B) only direct expenses should be allocated to each marketing unit being analyzed.
C) the contribution-margin approach assumes all costs are variable.
D) allocation bases are arbitrary.
E) it is impossible to allocate indirect costs accurately among products.

Proponents of the Full-Cost Approach to Marketing Cost Analysis Contend