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A manager is using a full-cost approach, then allocating fixed costs on the basis of sales volume as a way of analyzing marketing costs. This method could:

Respuesta :

This strategy may create a situation in which low-volume consumers appear to be more profitable than they are.

What exactly is the full cost approach?

In the oil and gas business, the full cost technique is a cost accounting method. All property acquisition, exploration, and development costs are consolidated and capitalized into a national cost pool using this method. Whether or not a well is regarded as successful, this capitalization occurs.

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