When deciding how to evaluate costs, a marketing manager should realize that
A) the best method for dealing with fixed costs depends on the objectives of the analysis.
B) according to the iceberg principle too much detail in cost analysis obscures the big problems by calling attention to the superficial problems.
C) the full cost approach is misleading and should not be used.
D) the contribution-margin approach ignores necessary fixed costs and should not be used.
E) None of the above.

Question

Quizplus · Accepted Answer

The best method for dealing with fixed costs depends on the objectives of the analysis. It is important for a marketing manager to consider the specific goals of the analysis and choose a cost evaluation method that aligns with those goals. The other options presented are either incorrect or incomplete in their assessments of cost evaluation methods.

When Deciding How to Evaluate Costs, a Marketing Manager Should