An Argument in Favor of the "Full-Cost" Approach to Cost

question 19

Multiple Choice

An argument in favor of the "full-cost" approach to cost allocation is:

• A)In the long run all costs are fixed.
• B)With a good accounting system,we can accurately allocate any expense.
• C)Essentially,the whole purpose of a marketing cost analysis is to determine the net profitability of the marketing unit being studied.
• D)It is easy to establish defensible bases for allocating expenses.
• E)It is a good basis for short-run decision making at the district or regional sales force level.

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Definitions:

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