A company produces three product lines and a different marketing manager is responsible for each line. Most marketing expenses are specific to each line, but a common sales force sells all three lines. Sales reps are paid by commission, with a different commission for each product line. In this case, in a marketing cost analysis,
A) the contribution-margin approach would probably divide personal selling expense based on commission expense for each product line.
B) a full-cost approach would ignore commission expense since it is not a fixed cost.
C) sales commissions are a variable expense and would not be considered in the contribution-margin approach.
D) the full-cost approach would be easier to do if all sales reps were paid a straight salary.
E) None of these is true.
Correct Answer:
Verified
Q121: Which of the following observations is true?
A)
Q122: The _ approach shows operating managers and
Q123: If one were using the "full-cost" approach
Q124: The "contribution-margin approach" to marketing cost analysis:
A)
Q125: Which of the following would be the
Q127: The "contribution margin approach" to marketing cost
Q128: The "contribution-margin approach" to marketing cost analysis:
A)
Q129: When deciding how to evaluate costs, a
Q130: The contribution-margin approach focuses attention on _
Q131: Lori Winters, a regional sales manager, is
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