Which of the Following Is the Best Reason for Using

Multiple Choice

Which of the following is the best reason for using the contribution-margin approach in a marketing cost analysis by product line?

A) The net profit of each product line is what we are trying to determine.
B) Full allocation of all costs is the best accounting practice.
C) To go beyond allocation of measurable costs is to allocate indirect costs on an arbitrary basis.
D) When analyzing marketing costs by products,all such costs are indirect.
E) In the long run all costs must be covered.