A Reason for Using the Contribution-Margin Approach in a Marketing

question 7

Multiple Choice

A reason for using the contribution-margin approach in a marketing cost analysis is that:

• A)It tells management which territories or products are profitable.
• B)Arbitrarily allocating indirect expenses to individual territories or products can give misleading information to management.
• C)Ledger costs can be allocated into activity groups.
• D)Each marketing unit (product,territory,for example)should bear its full share of costs.
• E)This approach is especially useful as a basis for long-range planning.

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Definitions:

Difference

A point or way in which people or things are not the same, often used in the context of comparing or contrasting entities.

Substance P

A neuropeptide that plays an important role in the transmission of pain signals in the nervous system.

Sense Of Balance

The ability to maintain bodily equilibrium or stability through the integration of sensory information from the vestibular, visual, and proprioceptive systems.

Primary Tastes

The five basic tastes recognized by the human sensory system: sweet, sour, salty, bitter, and umami.