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  3. Study Set
    Managerial Accounting Study Set 1
  4. Exam
    Exam 15: Target Costing and Cost Analysis for Pricing Decisions
  5. Question
    When a Firm Has Excess Capacity, a Price That Covers
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When a Firm Has Excess Capacity, a Price That Covers

Question 3

Question 3

True/False

When a firm has excess capacity, a price that covers the incremental costs incurred because of the job will contribute toward covering the company's fixed cost and profit.

Correct Answer:

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