Question 1
A common mistake managers make in deciding to close a division is allowing
◦ avoidable costs to influence the decision.
◦ customer needs and desires to influence the decision.
◦ qualitative issues to influence the decision.
◦ allocated fixed costs to influence the decision.
Question 2
Which of the following should
not influence a manager's decision in deciding whether or not to close a division?
◦ Qualitative factors
◦ Allocated variable selling expenses
◦ Allocated fixed costs
◦ Allocated product costs