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5. How is differential analysis used in deciding whether to keep or drop product lines? 6. Why are direct fixed costs typically differential costs? 7.
5. How is differential analysis used in deciding whether to keep or drop product lines?
6. Why are direct fixed costs typically differential costs?
7. Why are allocated fixed costs typically not differential costs?
8. What is an opportunity cost? Why is an opportunity cost a differential cost?
9. How is differential analysis similar for customer decisions and product line decisions?
10. What two important assumptions must be considered when evaluating special order scenarios?
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