Contribution Margin: What It Is, How to Calculate It, and Why You Need It
If a segment of the company iseliminated, the indirect cost for depreciation assigned to thatsegment does not disappear; the cost is simply allocated among theremaining segments. In a given situation, it may be possible toidentify an indirect cost that would be eliminated if the costobject were eliminated, but this would be the exception to thegeneral …
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