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

question 103

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.

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