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Financial Decision Making for Managers
Part 1
1. What is relevant range?
2. Give two examples of costs that are variable costs and two examples of fixed costs.
Part 2
1. Explain the responsibility of the accounting department.
2. What is one advantage of having 2 costs pools (one for fixed costs and one for variable costs) for each service department?
Part 3
1. How would a manager use economic theory to determine profit-maximizing price for a service or product?
2. What is the process of target costing? How is target cost calculated?
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