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S_leve3 S_leve3
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8 years ago
What are direct, traceable common, and nontraceable common costs? Give an example of each.
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milestone23milestone23
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Direct costs are costs that we can assign directly to the proper marketing entities, such as materials costs and sales-force salaries. Traceable common costs are incurred indirectly but can be attributed on a plausible basis to various marketing entities, such as rent expenses. Nontraceable common costs are costs whose assignments are highly arbitrary, such as "corporate image" expenditures.
 
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