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    Managerial Accounting Study Set 23
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    Exam 6: Variable Costing and Segment Reporting: Tools for Management
  5. Question
    Allocating Common Fixed Expenses to Business Segments
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Allocating Common Fixed Expenses to Business Segments

Question 72

Question 72

Multiple Choice

Allocating common fixed expenses to business segments:


A) may cause managers to erroneously discontinue business segments.
B) may cause managers to erroneously keep business segments that should be dropped.
C) ensures that all costs are covered.
D) helps managers make good decisions.

Correct Answer:

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