_________ are the two basic approaches to handling marketing cost allocation problems.
A) The average-cost approach and the break-even approach
B) The performance-analysis approach and the sales-analysis approach
C) The revenues approach and the expenses approach
D) The gross margin approach and the net margin approach
E) The full-cost approach and the contribution-margin approach

Question

Quizplus · Accepted Answer

The two basic approaches to handling marketing cost allocation problems are the full-cost approach and the contribution-margin approach. The full-cost approach allocates all costs, including fixed and variable, to the product or service being marketed, whereas the contribution-margin approach focuses only on the variable costs directly related to the product or service. The contribution-margin approach is often preferred because it provides a better understanding of the profitability of a product or service and allows for more informed decisions about pricing and marketing strategies.

_________ Are the Two Basic Approaches to Handling Marketing Cost