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Based on what we saw in the lecture example in our module for Hoaglund's Lakeshore, if common fixed expenses are allocated to business segments, this:

Based on what we saw in the lecture example in our module for Hoaglund's Lakeshore, if common fixed expenses are allocated to business segments, this:

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ensures that all costs are covered.

may cause managers to erroneously keep business segments that should be dropped.

may cause managers to erroneously discontinue business segments.

helps managers make good decisions.

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