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

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.




Answer: B


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