Book Mark Publishing House had released a new book.When the firm wanted to calculate the amount earned from the new novel,it included all variable and fixed joint costs related to the product.This implies that the publisher was using:
A)contribution margin analysis.
B)full cost analysis.
C)merchandise allowance analysis.
D)indirect cost analysis.

Question

Quizplus · Accepted Answer

The publisher was using full cost analysis which includes both variable and fixed joint costs, while contribution margin analysis only focuses on variable costs and indirect cost analysis deals specifically with identifying and allocating indirect costs. Merchandise allowance analysis is not relevant in this context.

Book Mark Publishing House Had Released a New Book