Regarding the contribution-margin approach to marketing cost analysis, which of the following statements is true?
A. This approach may suggest a different action than the full-cost approach.
B. This approach stresses the need for evaluating fixed costs.
C. The total net profit obtained with this approach is different from that obtained using the full-cost approach.
D. It is concerned with the amount contributed by a product or customer toward covering variable costs-after fixed costs have been covered.
E. All these statements are true.
Answer: A
You might also like to view...
Telemarketing involves the use of trained personnel to conduct planned, measurable marketing activities directed at targeted groups of consumers.
Answer the following statement true (T) or false (F)
Homeyer Corporation has provided the following data for its two most recent years of operation: Selling price per unit$71Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials$12Direct labor$6Variable manufacturing overhead$3Fixed manufacturing overhead per year$264,000Selling and administrative expenses: Variable selling and administrative expense per unit sold$4Fixed selling and administrative expense per year$74,000 Year 1Year 2Units in beginning inventory03,000Units produced during the year11,00012,000Units sold during the year8,00014,000Units in ending inventory3,0001,000The net operating income (loss) under absorption costing in Year 1 is closest to:
A. $208,000 B. $30,000 C. $176,000 D. $102,000
Most viewers move speedily through:
a. navigation pages b. content pages c. both of the above d. none of the above
Mona co-signs a promissory note with her daughter Beth so Beth can purchase her first car. Mona will be discharged from her obligation on the note:
a. if Beth pays the obligation in full under the terms of the note. b. only if Mona pays half of the value of the note. c. when Beth turns 18. d. only if Mona dies before Beth's obligation is discharged.