Supporters of the Contribution-Margin Approach to Marketing Cost Analysis Believe

Multiple Choice

Supporters of the contribution-margin approach to marketing cost analysis believe that:

A) All functional costs should be attributed to each marketing unit being analyzed.
B) The contribution-margin approach is the 80:20 principle in action.
C) A marketing cost study is intended to determine the net profitability of the marketing units being analyzed.
D) It is not possible to accurately allocate indirect costs among products or market segments.
E) Unless all costs are allocated among the marketing units,management will not know how a territory or product line is contributing to the organization's success or failure.