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  2. Topic
    Business
  3. Study Set
    Contemporary Accounting
  4. Exam
    Exam 17: Accounting for Decision Making: With and Without Resource Constraints
  5. Question
    In a Situation Where a Division Has Variable Costs and Avoidable
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In a Situation Where a Division Has Variable Costs and Avoidable

Question 15

Question 15

True/False

In a situation where a division has variable costs and avoidable fixed costs, and these costs combined exceed income, then based only on the financials the division should be closed.

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