In the contribution-margin approach in a marketing cost analysis,only the direct expenses are allocated to the marketing units being studied.

Question

Quizplus · Accepted Answer

The contribution-margin approach only considers direct expenses such as production costs, sales commissions, and advertising expenses that are specifically attributed to the marketing unit being analyzed. Indirect expenses such as rent, utilities, and general overhead costs are not allocated to the marketing unit, but are instead covered by the company as a whole.

In the Contribution-Margin Approach in a Marketing Cost Analysis,only the Direct