When adding or dropping a product line,fixed avoidable costs may be relevant costs.

Name: When adding or dropping a product line,fixed avoidable costs may be relevant costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Fixed avoidable costs include expenses that can be eliminated or avoided if a particular product line is dropped or added. Therefore, when making decisions about adding or dropping a product line, fixed avoidable costs are relevant costs to consider.

When Adding or Dropping a Product Line,fixed Avoidable Costs May