Regarding the "contribution-margin approach" to marketing cost analysis, which of the following statements is TRUE

Regarding the "contribution-margin approach" to marketing cost analysis, which of the following statements is TRUE


A. The total net profit obtained with this approach is different from that obtained using the "full-cost approach."

B. It is concerned with the amount contributed by a product or customer toward covering variable costs--after fixed costs have been covered. 

C. This approach stresses the need for evaluating fixed costs. 

D. This approach may suggest a different action than the "full-cost approach."

E. All of the above are true



Answer: D. This approach may suggest a different action than the "full-cost approach."


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