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.

---

Definitions:

Comparable Work

Comparable work refers to jobs that are sufficiently similar in terms of skills, effort, responsibility, and working conditions, used often in discussions about fair wages and equal pay.

GDP

Gross Domestic Product (GDP) measures the total value of all final goods and services produced within a country's borders in a specific time period, representing the size of its economy.

Trade Deficit

A scenario in which a nation's expenditure on imported goods and services surpasses its revenue from exports, leading to a net export of the home currency to international markets.

U.S. Dollars

The official currency of the United States, represented by the symbol $.