Average costs are used to make decisions about keeping or dropping product or segments.
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Q23: A special order occurs when an existing
Q24: If idle capacity exists, special orders replace
Q25: Special orders may stipulate requirements such as
Q26: Special orders require idle capacity.
Q27: Cash flow analysis can be used in
Q29: The loss of the contribution margin supplied
Q30: There are no opportunity costs in keep
Q31: Products should be dropped when its total
Q32: The relevant fixed costs for a keep
Q33: If there is no idle capacity then
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