Which of the Following Statements Describes an Occurrence in the Contribution-Margin

Multiple Choice

Which of the following statements describes an occurrence in the contribution-margin approach to marketing cost analysis?

A) All costs are assumed to be variable.
B) Indirect costs become easier to allocate.
C) All direct and indirect expenses are allocated to each marketing unit being analyzed.
D) Only direct expenses are allocated to each marketing unit being analyzed.
E) The organizational overhead expenses are attributed to each marketing unit.