A Firm Is Doing a Marketing Cost Analysis Involving Two

Multiple Choice

A firm is doing a marketing cost analysis involving two products, three target markets, and $6 million in advertising costs. The firm should:

A) allocate $2 million of the advertising costs to each target market.
B) allocate these costs to general overhead.
C) determine the purpose of the advertising and allocate costs to products and target markets accordingly.
D) allocate these costs to each product and target market on the basis of their percentage of total sales.
E) allocate $3 million of the advertising costs to each product.