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A company has obsolete inventory and is trying to decide whether to trash it or sell it for a reduced cost. Which of the following

A company has obsolete inventory and is trying to decide whether to trash it or sell it for a reduced cost. Which of the following is (are) relevant to the decision?

Direct material cost assigned to the inventory Fixed overhead cost assigned to the inventory
A) Yes Yes
B) Yes No
C) No Yes
D) No No

Multiple Choice

  • Choice C

  • Choice D

  • Choice B

  • Choice A

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