Common fixed costs are fixed costs that are common to the entire company/all product lines...
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Accounting
Common fixed costs are fixed costs that are common to the entire company/all product lines and are NOT specific to a particular product line. When a product line is dropped, the common fixed costs which had been allocated to that product line... become opportunity costs become variable costs are eliminated (i.e., are no longer incurred) continue to be incurred and are allocated to the remaining product lines
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