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Which of the following is true regarding the treatment of allocated common fixed costs when making decisions about dropping a product? Multiple Choice O Allocated
Which of the following is true regarding the treatment of allocated common fixed costs when making decisions about dropping a product? Multiple Choice O Allocated common fixed costs should be considered irrelevant because they will not be eliminated if the product line is dropped. 0 Allocating common fixed costs to products increases each product's contribution margin. 0 Common fixed costs should be allocated to products based on their sales revenue as this best reflects each product's ability to 'bear the costs. O Allocating common fixed costs to products may overstate the true profitability of the product. Which of the following costs is always relevant in decision making? Multiple Choice C) Avoidable costs 0 Sunk costs 0 Allocated common costs 0 Joint costs prior to split-off
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