Which of the following is the best reason for using the contribution-margin approach in a marketing cost analysis by product line?
A) The net profit of each product line is what we are trying to determine.
B) Full allocation of all costs is the best accounting practice.
C) To go beyond allocation of measurable costs is to allocate indirect costs on an arbitrary basis.
D) When analyzing marketing costs by products,all such costs are indirect.
E) In the long run all costs must be covered.
Correct Answer:
Verified
Q45: Regarding the full-cost vs.contribution-margin controversy:
A)The contribution-margin approach
Q46: In a marketing cost analysis:
A)A given marketing
Q47: As a part of a marketing cost
Q48: When a marketing cost analysis shows that
Q49: Suppose a marketing manager wishes to allocate
Q51: A reason for using the contribution-margin approach
Q52: Each sales rep in our firm has
Q53: Suppose a marketing manager was conducting a
Q54: If a certain territory or product were
Q55: Marketing cost analysis is not likely to
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