Regarding the choice between the "full-cost approach" and the "contribution margin approach" to marketing cost analysis:
A) Top management tends to prefer the "full-cost approach."
B) The "full-cost" approach often leads to arguments within a company.
C) The choice of the method depends on the objectives of the analysis.
D) All of the above.

Question

Quizplus · Accepted Answer

The choice between the "full-cost approach" and the "contribution margin approach" depends on the objectives of the analysis, and each approach has its own implications. Top management may prefer the full-cost approach for a comprehensive view, but it can lead to internal disagreements due to its complexity and allocation issues.

Regarding the Choice Between the "Full-Cost Approach" and the "Contribution