The Main Difference Between the Full-Cost Approach and the Contribution-Margin

question 105

Multiple Choice

The main difference between the full-cost approach and the contribution-margin approach to marketing cost analysis is:

• A) The contribution-margin approach uses both mechanical and logical reasoning to allocate marketing costs.
• B) The full-cost approach allocates all costs-even fixed costs-to products, customers, or other categories.
• C) The contribution-margin approach allocates all costs to show how profitable various customers are.
• D) The full-cost approach focuses on variable costs rather than total costs.

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Definitions:

Occupational Segregation

The division of jobs in the labor market based on demographic characteristics, such as gender or ethnicity, leading to unequal job opportunities and pay.

Ethnicity

A social category based on common culture, language, ancestry, or national experience, distinguishing groups of people in society.

Race

A social construct used to categorize humans into large and distinct groups based on physical characteristics, ancestry, historical affiliations, or culture.

Self-Estrangement

The feeling of being disconnected or alienated from one's own emotions, thoughts, or sense of identity.