The first step in marketing cost analysis is to:
A) Reclassify the dollar cost entries in the functional accounts into natural cost accounts.
B) Use the entries in the functional accounts to evaluate the profitability of profit centers.
C) Allocate the entries in the functional accounts to specific customers.
D) Reclassify the dollar cost entries in the natural accounts into functional cost accounts.
E) None of these.

Question

Quizplus · Accepted Answer

The first step in marketing cost analysis involves reclassifying the dollar cost entries from natural accounts, which categorize costs by their nature (e.g., salaries, rent, utilities), into functional cost accounts. This reclassification helps in analyzing costs based on their function or purpose within the marketing process, such as distribution, advertising, or sales force costs.

The First Step in Marketing Cost Analysis Is To