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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
    A Department Generates Income of $20 000 and Has Variable
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A Department Generates Income of $20 000 and Has Variable

Question 10

Question 10

True/False

A department generates income of $20 000 and has variable costs of $14 000 and avoidable fixed costs of $7500. This indicates that the costs directly attributable to the department exceed its income and the department should be closed.

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