When the "Full-Cost Approach" to Marketing Cost Analysis Is Used

question 86

Multiple Choice

When the "full-cost approach" to marketing cost analysis is used, allocating fixed costs on the basis of sales:

• A) may make low-volume customers appear more profitable than they are.
• B) increases each customer's contribution margin.
• C) decreases the profitability of the whole business.
• D) makes large-volume customers appear more profitable that they are.
• E) increases the profitability of the whole business.

---

Definitions:

Triangulation

The use of multiple methods or data sources in research to improve the accuracy and validity of results by cross-verifying findings.

Ethnography

A qualitative research method focused on studying cultures, practices, and communities through observation and participation.

Sociometry

A quantitative method for measuring social relationships, used to identify the structure of groups and the position of individuals within them.