When Deciding How to Evaluate Costs, a Marketing Manager Should

question 119

Multiple Choice

When deciding how to evaluate costs, a marketing manager should realize that

• A) the best method for dealing with fixed costs depends on the objectives of the analysis.
• B) according to the iceberg principle too much detail in cost analysis obscures the big problems by calling attention to the superficial problems.
• C) the full cost approach is misleading and should not be used.
• D) the contribution-margin approach ignores necessary fixed costs and should not be used.
• E) None of these are correct.

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Definitions:

Observer-Expectancy Effect

refers to a cognitive bias wherein a researcher's expectations influence the participants of an experiment, potentially affecting the outcome.

Mental Age

A measure of an individual's cognitive ability compared to the average cognitive ability of an individual of a specific chronological age.

Intelligence Quotient

A numerical measure of a person's cognitive abilities in relation to their age group, often assessed through standardized tests.

Chronological Age

The measure of an individual's age in years, months, and days, from their date of birth to the current date.