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.
Answer: A. All costs are not allocated in all situations.