The Main Difference Between the Full-Cost Approach and the Contribution-Margin

Multiple Choice

The main difference between the full-cost approach and the contribution-margin approach to marketing cost analysis is:

A) The contribution-margin approach uses both mechanical and logical reasoning to allocate marketing costs.
B) The full-cost approach allocates all costs-even fixed costs-to products, customers, or other categories.
C) The contribution-margin approach allocates all costs to show how profitable various customers are.
D) The full-cost approach focuses on variable costs rather than total costs.