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29 July, 17:16

Which of the following statements regarding differential costs is (are) false? (A) The full-cost fallacy occurs when a decision-maker fails to include fixed manufacturing overhead in the product's cost. (B) When deciding whether or not to accept a special order, a decision-maker should focus on differential costs instead of full costs.

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  1. 29 July, 17:26
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    The answer is A. The full-cost fallacy occurs when a decision-maker fails to include fixed manufacturing overhead in the product's cost.
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