When deciding how to evaluate costs, a marketing manager should realize that
A) the best method for dealing with fixed costs depends on the objectives of the analysis.
B) according to the iceberg principle too much detail in cost analysis obscures the big problems by calling attention to the superficial problems.
C) the full cost approach is misleading and should not be used.
D) the contribution-margin approach ignores necessary fixed costs and should not be used.
E) None of these are correct.

Question

Quizplus · Accepted Answer

The best method for dealing with fixed costs depends on the objectives of the analysis, which means that the marketing manager needs to consider the goals and priorities of the business before choosing a cost evaluation method. The other options presented are incorrect.

When Deciding How to Evaluate Costs, a Marketing Manager Should