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    Managerial Accounting Study Set 22
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    Exam 7: The Use of Cost Information in Management Decision Making
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    When Deciding Whether to Eliminate a Segment, the Segment Should
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When Deciding Whether to Eliminate a Segment, the Segment Should

Question 105

Question 105

True/False

When deciding whether to eliminate a segment, the segment should be dropped if its contribution margin less the avoidable fixed costs is positive.

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