In a Marketing Cost Analysis

Multiple Choice

In a marketing cost analysis:

A) A given marketing cost is always allocated on the same basis.
B) To determine the contribution margin of product groups,you must allocate all marketing expenses among these product groups.
C) A common approach is to allocate ledger expenses to activity-cost groups,and then allocate these activity costs among marketing units such as territories or products.
D) Indirect expenses should not be allocated if you want to know the net profit of a territory or product.
E) In a well-managed firm all marketing costs will be direct costs.