With the "Contribution-Margin Approach" to Marketing Cost Analysis

question 21

Multiple Choice

With the "contribution-margin approach" to marketing cost analysis,

• A) all costs are allocated to products, customers, or other categories.
• B) fixed costs are allocated based on the profit contribution to the firm.
• C) variable costs are treated as common costs.
• D) common costs which are hard to allocate are ignored.
• E) None of these is true.

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Definitions:

Factor B

Factor B usually represents a variable or an element in an experiment that is manipulated to observe its effect on an outcome, distinguishable from Factor A.

MSB

Mean Square Between; a term used in ANOVA to describe the average of squared differences between group means and the overall mean.

DfA

Stands for "Design for All", which is an approach to design that aims to make products and environments accessible to as many people as possible, regardless of age, ability, or status.

DfWG

Degrees of Freedom Within Groups, a term used in statistics to describe the number of independent values or quantities which can vary in the analysis without violating any given constraints.