The contribution-margin approach should never be used in a marketing cost analysis by products or territories.

Question

Quizplus · Accepted Answer

The contribution-margin approach can be useful in marketing cost analysis by products or territories as it helps in identifying the profitability of each product or territory. It calculates the difference between the revenue and variable costs, which gives an insight into the amount of revenue available to cover fixed costs and provide a profit. This information helps in making informed decisions about resource allocation and pricing strategies.

The Contribution-Margin Approach Should Never Be Used in a Marketing