Marketing cost analysis:
A) just uses the same "natural" accounting categories commonly used for financial analysis.
B) allocates costs to products or customers to focus on the purpose for which marketing money is spent.
C) is not very accurate, since it is almost impossible to link marketing costs to specific sales.
D) is done more frequently than analysis of manufacturing costs.
E) None of the above is true.

Question

Quizplus · Accepted Answer

Marketing cost analysis allocates costs to products or customers to focus on the purpose for which marketing money is spent, which means it is not just using the same "natural" accounting categories commonly used for financial analysis. It also attempts to link marketing costs to specific sales, so it has higher accuracy than stated in option C. Option D lacks any explanation, making it difficult to determine its accuracy. Option E, as it is negating all the statements, cannot be entirely true. Therefore, B is the best choice with the explanation.

Marketing Cost Analysis