Regarding Marketing Cost Analysis, Which of the Following Statements Is

question 110

Multiple Choice

Regarding marketing cost analysis, which of the following statements is TRUE?

• A) Natural accounts are set up to indicate the purpose for which the expenditures were made.
• B) The contribution-margin approach focuses attention on all costs equally.
• C) The first step is to reclassify all costs in the natural accounts into functional accounts.
• D) The total of costs in the natural accounts will often differ from the total of those in the functional accounts.
• E) All of the above are true.

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Definitions:

Depreciation Expense

The allocated portion of the cost of a tangible or physical asset that is written off as an expense over its useful life.

Revised Amounts

Adjusted figures in financial statements or budgets to reflect changes from previously reported or estimated numbers.

Straight-Line Method

A method of calculating depreciation for an asset, spreading the cost evenly over its useful life.

Depreciation Expense

It is an accounting method of allocating the cost of a tangible asset over its useful life.