The "Contribution Margin Approach" to Marketing Cost Analysis

question 98

Multiple Choice

The "contribution margin approach" to marketing cost analysis:

• A) allocates all costs to products or customers.
• B) should always be used instead of the full-cost approach-so that fixed costs are fully considered.
• C) focuses management's attention on variable costs rather than total costs.
• D) assumes that all costs must be allocated.
• E) None of these are correct.