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In: Finance

If two areas of a firm have different risk levels, the riskier area should be charged...

If two areas of a firm have different risk levels, the riskier area should be charged higher costs for items such as insurance, which makes the riskier area have a higher break-even point. True False

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Expert Solution

Statement is True : If two areas of a firm have different risk levels, the riskier area should be charged higher costs for items such as insurance, which makes the riskier area have a higher break-even point


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