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Should maxcor manufacturing allocate plant-closing costs to

Question: Please help out on this case study.

1. Do not answer listed required questions. Please make up one question relevant to the issues in the case. (1 page)

2. Should Maxcor Manufacturing allocate plant-closing costs to operating costs? Why? (Support by FASB references about Exit Activities) If Maxcor decide to keep closing plants/ downsizing, discuss the impacts on current bonus plan of current bonus formula. (2 pages)

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Accounting Basics: Should maxcor manufacturing allocate plant-closing costs to

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