If One Were Using the "Full-Cost" Approach to Marketing Cost

Multiple Choice

If one were using the "full-cost" approach to marketing cost analysis, then allocating fixed costs on the basis of sales volume would:

A) make some customers appear more profitable than they actually are.
B) not be done--because only variable costs would be analyzed.
C) make some products appear less profitable than they actually are.
D) decrease the profitability of the whole business.
E) Both A and C are true statements.