A Manager Is Using a Full-Cost Approach, Then Allocating Fixed

question 38

Multiple Choice

A manager is using a full-cost approach, then allocating fixed costs on the basis of sales volume as a way of analyzing marketing costs. This method could:

• A) Result in a decrease of profitability for the entire company
• B) Create an environment that limits the total sales that can be made
• C) Create an environment where high-volume customers appear more profitable than they actually are
• D) Create an environment where low-volume customers appear more profitable than they actually are
• E) All of the above

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Definitions:

Optic Nerves

The pair of cranial nerves transmitting visual information from the retina to the brain.

Post-Traumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, and severe anxiety.

Acute Stress Disorder

A disorder, like PTSD, that is characterized by feelings of anxiety and helplessness and caused by a traumatic event; acute stress disorder occurs within a month of the event and lasts from two days to four weeks.

Traumatic Event

A deeply disturbing or distressing experience that can lead to lasting psychological and emotional impact.