Supporters of the contribution-margin approach to marketing cost analysis believe that:
A) unless all costs are allocated among the marketing units, management will not know how a territory or . product line is contributing to the organization's success or failure.
B) all functional costs should be attributed to each marketing unit being analyzed.
C) a marketing cost study is needed to determine the net profitability of the marketing units being analyzed.
D) it is not possible to accurately allocate indirect costs among products or market segments.
E) the contribution-margin approach is the iceberg principle in action.

Question

Quizplus · Accepted Answer

The contribution-margin approach focuses on the idea that not all indirect costs can be accurately allocated among products or market segments, which is why it emphasizes looking at direct costs and contribution margins instead.

Supporters of the Contribution-Margin Approach to Marketing Cost Analysis Believe