A firm is doing a marketing cost analysis involving two products, three target markets, and $6 million in advertising costs. The firm should
A. allocate these costs to general overhead.
B. allocate $3 million of the advertising costs to each product.
C. allocate $2 million of the advertising costs to each target market.
D. determine the purpose of the advertising and allocate costs to products and target markets accordingly.
E. allocate these costs to each product and target market on the basis of their percentage of total sales.
Answer: D
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