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The General Rule for Keep or Drop a business segment decision is 1-Keep the business segment if Irrelevant Cost covers relevant cost. 2-Keep the business

The General Rule for Keep or Drop a business segment decision is

1-Keep the business segment if Irrelevant Cost covers relevant cost.

2-Keep the business segment if its contribution margin covers its unavoidable cost

3-Keep the business segment if its relevant cost is less than avoidable cost

4-Keep the business segment if its contribution margin covers its avoidable cost

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