Which of the following is correct with regard to short-term decision making? A....
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Accounting
Which of the following is correct with regard to short-term decision making?
A.
When a manufacturer outsources production of a part used in its production process, the manufacturer will typically eliminate all fixed manufacturing costs.
B.
In a keep/drop decision, if all of a companys fixed costs are common, a segments segment margin will be less than its contribution margin
C.
If a company has sufficient excess capacity to fully fill a special order, the company will need to give up regular sales if they accept the special order.
D.
A company having few competitors would typically use target costing in its pricing approach.
E.
The effect on current and future customer relationships should be considered when deciding whether to accept or reject a special order.
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