The "full-cost approach" to marketing cost analysis:
A) Allocates all costs, except fixed costs, to products, customers, or other categories.
B) Is designed so that customers, products, or other categories are always allocated an equal amount of costs.
C) Requires that difficult-to-allocate costs be split in some way.
D) Should always be avoided.
E) None of these are correct.

Question

Quizplus · Accepted Answer

The full-cost approach requires that all costs, including difficult-to-allocate costs, be assigned to products, customers, or other categories, often through some method of allocation.

The "Full-Cost Approach" to Marketing Cost Analysis