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.

---

Definitions:

Existential Import

The aspect of a statement that asserts the existence of something.

Modern Rules

Contemporary guidelines or principles that govern behavior or procedures in a specific area or activity.

Enthymeme

An argument in which one of the premises is not explicitly stated, but is assumed or implied.

Unstated Premise

An implicit assumption in an argument that is not directly expressed but is necessary for the argument's conclusion.