Regarding Marketing Cost Analysis

question 122

Multiple Choice

Regarding marketing cost analysis,

• A) the full-cost approach usually should be used as there are almost always some fixed costs to be allocated.
• B) the contribution-margin approach focuses attention on variable costs.
• C) fixed costs should be allocated according to the contribution-margin approach.
• D) the action implications will be the same whether the full-cost or contribution-margin approach is used.
• E) the contribution-margin approach provides the most complete allocation of total expenses.

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Definitions:

Buyer in the Ordinary Course of Business

A legal term describing a person who purchases goods in good faith within the usual and customary practices of a particular trade or business.

Bona Fide Purchaser

A Bona Fide Purchaser is someone who buys property in good faith, without notice of any other party's claim to the property or any defects in the title.

Right to Redeem

The legal right allowing a debtor to reclaim ownership of property by paying off a loan or other obligation, usually within a specific period of time after a foreclosure sale.

Secured Party

An individual or organization that holds an interest in a security agreement on property offered as collateral, ensuring payment or performance of some obligation.