When the "full-cost approach" to marketing cost analysis is used, allocating fixed costs on the basis of sales:

When the "full-cost approach" to marketing cost analysis is used, allocating fixed costs on the basis of sales:


A. may make low-volume customers appear more profitable than they are.

B. increases each customer's contribution margin.

C. decreases the profitability of the whole business.

D. makes large-volume customers appear more profitable that they are.

E. increases the profitability of the whole business.



Answer: A. may make low-volume customers appear more profitable than they are.


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