Proponents of the full-cost approach to marketing cost analysis contend the contribution-margin approach is the 80-20 principle in action.

Question

Quizplus · Accepted Answer

The full-cost approach to marketing cost analysis and the contribution-margin approach represent different methodologies for analyzing costs and profitability. The 80-20 principle, or Pareto Principle, suggests that 80% of effects come from 20% of causes, which is a separate concept not directly equated with the contribution-margin approach.

Proponents of the Full-Cost Approach to Marketing Cost Analysis Contend