The "Contribution-Margin Approach" to Marketing Cost Analysis

question 74

Multiple Choice

The "contribution-margin approach" to marketing cost analysis:

• A) considers only those costs which are directly related to particular alternatives.
• B) is especially useful for estimating the long-run profit of a proposed strategy.
• C) allocates variable costs which are hard to measure to overhead.
• D) is especially useful for determining if there should be more controls on fixed costs.
• E) All of these are correct.

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Definitions:

Working Memory

A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing.

Short-Term Memory

A psychological term referring to the capacity for holding a small amount of information in an active, readily available state for a short period of time.

Autobiographical

Pertaining to the events of one's own life history, often depicted in personal writings, narratives, or memoirs.

Dishabituation

A renewal of attention or a response to a stimulus that had previously become familiar through habituation.