If One Were Using the "Full-Cost" Approach to Marketing Cost

question 90

Multiple Choice

If one were using the "full-cost" approach to marketing cost analysis, then allocating fixed costs on the basis of sales volume would:

• A) make some customers appear more profitable than they actually are.
• B) not be done-because only variable costs would be analyzed.
• C) make some products appear less profitable than they actually are.
• D) decrease the profitability of the whole business.
• E) Both make some customers appear more profitable than they actually are and make some products appear less profitable than they actually are are true statements.

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Definitions:

Diathesis-stress Model

A psychological theory that attempts to explain a disorder, or its trajectory, as the result of an interaction between a predispositional vulnerability and stress caused by life experiences.

Mental Illness

A broad category of conditions affecting mental health, which can impact one's thoughts, emotions, behaviors, and relationships.

Genetic Propensity

An inherited inclination or natural tendency to behave in a certain way or to develop certain traits, often influenced by genetic makeup.

Panic Disorder

An anxiety disorder that consists of sudden, overwhelming attacks of terror.