In a Marketing Cost Analysis,the Textbook Identifies Three Methods Used

question 65

Multiple Choice

In a marketing cost analysis,the textbook identifies three methods used to allocate indirect costs.One method is to divide indirect cost equally among territories.This method:

• A)is the easiest of the three methods.
• B)is the most accurate method.
• C)is the method that is fairest to all territories.
• D)uses the underlying philosophy of applying the cost burden to where it can best be borne.
• E)None of these.

---

Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts, making it the simplest depreciation method.

After-Tax Discount

The reduction in price or value of an item after taxes have been factored into its cost.

Income Tax Rate

The percentage of income that is paid to the government as tax. It can vary depending on the income level and jurisdiction.

Straight-Line Depreciation

An approach to spreading out the expense associated with a long-term asset evenly over the period it is expected to be used.