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Costs that should be considered when making an add, keep or drop decision include: ...

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Accounting

Costs that should be considered when making an add, keep or drop decision include:
a.
All of the variable expenses that contribute to the contribution margin, thus being available to cover fixed costs.
b.
Only the expenses directly related to the product line being examined.
c.
All expenses, and then determine from there which ones are relevant to the decision being made

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