Which of the Following Observations Is True

Multiple Choice

Which of the following observations is true?

A) Variable costs are irrelevant in the contribution-margin approach.
B) Both the full-cost approach and the contribution-margin approach yield similar decisions.
C) The contribution-margin approach ignores some costs to get results.
D) Top management always prefers the contribution-margin approach.
E) In the contribution-margin approach, all costs are allocated to products, customers, or other categories.