Which of the following is true regarding marketing cost analysis?
A. The contribution-margin approach focuses attention on variable costs.
B. Fixed costs should be allocated according to the contribution-margin approach.
C. The full-cost approach should usually be used, as there are almost always some fixed costs to be allocated.
D. The contribution-margin approach provides the most complete allocation of total expenses.
E. The action implications will be the same whether the full-cost approach or contribution-margin approach is used.
Answer: A
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