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E20.18 (LO 1, 2, 3, 4, 5, 6), C The following costs relate to a variety of different decision situations. Dow Decision Cost 1. Unavoidable
E20.18 (LO 1, 2, 3, 4, 5, 6), C The following costs relate to a variety of different decision situations. Dow Decision Cost 1. Unavoidable fixed overhead 2. Direct labor 3. Original cost of old equipment 4. Joint production costs 5. Opportunity cost 6. Segment manager's salary 7. Cost of new equipment 8. Incremental production costs 9. Direct materials 10. Rent expense Eliminate an unprofitable segment Make or buy Equipment replacement Sell or process further Accepting a special order Eliminate an unprofitable segment (manager will be terminated) Equipment replacement Sell or process further Equipment replacement (the amount of materials required does not change) Purchase or lease a building Instructions teqor! Tools For each cost listed above, indicate if it is relevant or not to the related decision. For those costs deter- mined to be irrelevant, briefly explain why.
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