A Major Purpose of Marketing Cost Analysis Is To

question 79

Multiple Choice

A major purpose of marketing cost analysis is to:

• A) determine which costs are fixed and which are variable.
• B) avoid the pitfalls of the full-cost approach to allocating costs.
• C) divide costs into natural accounts.
• D) show the marketing manager where costs occur in relation to serving particular customers.
• E) avoid the pitfalls of the contribution-margin approach to allocating costs.

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Definitions:

Independent Variable

An experimental variable that is intentionally altered to determine its impact on a variable that depends on it.

Dependent Variable

A variable in an experiment or study that is expected to change in response to changes in the independent variable.

Manipulated

Pertains to an independent variable in an experiment that is controlled or changed by the researcher to observe its effect.

Measured

Describes the process of quantitatively assessing or gauging a variable, attribute, or phenomenon.