If One Were Using the "Full-Cost" Approach to Marketing Cost

question 39

Multiple Choice

If one were using the "full-cost" approach to marketing cost analysis,then allocating fixed costs on the basis of sales volume would:

• A) make some customers appear more profitable than they actually are.
• B) not be done-because only variable costs would be analyzed.
• C) make some products appear less profitable than they actually are.
• D) decrease the profitability of the whole business.
• E) Both make some customers appear more profitable than they actually are and make some products appear less profitable than they actually are true statements.

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Definitions:

Ergs

Basic instinctual drives or primary motivational forces in some psychological theories; the term originates from the work of Sigmund Freud.

Personality Traits

Enduring characteristics or qualities that describe an individual's consistent behaviours and attitudes.

Stable Across Time

A characteristic or attribute that remains consistent and unchanged over a period.

Ergs

In psychology, often considered an outdated term for the basic drives or instincts that motivate human behavior, such as hunger, thirst, and sex.