One of the Best Arguments in Favor of the Full-Cost

question 15

Multiple Choice

One of the best arguments in favor of the full-cost approach to cost allocation is that:

• A)It is easy to establish defensible bases of allocation.
• B)It is less expensive and less time consuming than the contribution-margin approach.
• C)The allocation bases are not as arbitrary as in the contribution margin approach.
• D)Management in the territory (or whatever marketing unit is being analyzed)is made more aware of all costs - direct and indirect - than is true under the contribution-margin method.
• E)In the long run all costs are variable.

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Definitions:

Generation X

The demographic cohort following the baby boomers, typically born between the mid-1960s and early-1980s, known for its diverse music culture and the rise of personal computing.

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology, known for concepts such as the collective unconscious, archetypes, and psychological types.

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A term referring to everything that exists outside of one's self and subjective experiences.

Outgoing Person

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