Suppose a company currently makes a part that it uses in one of its products. If it
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Suppose a company currently makes a part that it uses in one of its products. If it de-
= cides to buy that part instead of making it, the cost of the raw materials used in producing that part is an avoidable cost. If the company stops making the part, do you think the depreciation cost of the factory is an avoidable cost? Why or why not?
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Related Book For 
Accounting Information For Business Decisions
ISBN: 9780030224294
1st Edition
Authors: Billie Cunningham, Loren A. Nikolai, John Bazley
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