Which of the Following Observations Concerning the Full-Cost Approach Is

Multiple Choice

Which of the following observations concerning the full-cost approach is NOT true?

A) All costs are not allocated in all situations.
B) It requires that difficult-to-allocate costs be split on some basis.
C) Fixed costs are also allocated in some way.
D) It could lead to a different decision than the one suggested by the contribution margin approach.
E) Common costs are also allocated in some way.