The Main Difference Between the Full-Cost Approach and the Contribution-Margin

question 105

Multiple Choice

The main difference between the full-cost approach and the contribution-margin approach to marketing cost analysis is:

• A) The contribution-margin approach uses both mechanical and logical reasoning to allocate marketing costs.
• B) The full-cost approach allocates all costs-even fixed costs-to products, customers, or other categories.
• C) The contribution-margin approach allocates all costs to show how profitable various customers are.
• D) The full-cost approach focuses on variable costs rather than total costs.

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Definitions:

Children

Young human beings below the age of puberty or legal adulthood.

Estimates

Estimates are approximations or educated guesses about a quantity or value, often used when precise data is unavailable.

Child Sexual Abuse

Involves engaging a child in sexual acts or exposing them to inappropriate sexual material or behavior.

Statutory Rape

A legal term describing a sexual relationship where one participant is below the age of consent as defined by law, making the act illegal regardless of consent.