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 make some customers appear more profitable than they actually are and make some products appear less profitable than they actually are are true statements.