Which of the Following Statements About the Contribution-Margin Approach to Marketing

Multiple Choice

Which of the following statements about the contribution-margin approach to marketing cost analysis is True?

A) With this approach, contribution margin and gross margin are assumed to be the same.
B) Only direct expenses are allocated to each market unit being analyzed with the contribution-margin approach.
C) All costs are allocated in the contribution-margin approach.
D) The contribution-margin approach assumes all costs are variable.
E) The contribution-margin approach focuses on indirect cost allocation.