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  1. business
  2. accounting
  3. product cross-subsidization occurs when: a. a high

Product cross-subsidization occurs when: a. a high-volume, low complexity product is exercosted, while a low...

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Accounting

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Product cross-subsidization occurs when: a. a high-volume, low complexity product is exercosted, while a low volume, high complexity product is undercosted. b. activity based costing is used instead of volume based costing. c. both preliminary and primary stage cost drivers are used. d. unit level activities are misclassified as batch level activities. e. companies produce products that are very similar to one another. For a decision with a scarce resource, the decision rule is to choose the alternative with the: a. best contribution margin per unit of scarce resource b. best contribution margin per unit of output c. lowest amount of allocated fixed costs d. lowest amount of fixed cost per unit of scarce resource e. lowest amount of fixed cost per unit of output Which capital investment methods require the use of a present value table? a. Payback and net present value b. Internal rate of return and net present value c. Payback and internal rate of return d. Accounting rate of return and internal rate of return e. Accounting rate of return and net present value

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