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Which of the following would be relevant in the decision to sell or throw out obsolete inventory?

Direct material cost assigned to the inventory

Fixed overhead cost assigned to the inventory

A) Yes Yes

B) Yes No

C) No Yes

D) No No

Respuesta :

Karabo99

Answer:

D) No No

Explanation:

Direct material cost and fixed overhead cost assigned to inventory, both are irrelevant in the decision to sell or throw out obsolete inventory because these costs are already incurred and treated as sunk cost.

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