Which of the Following Is Irrelevant to the Decision to Eliminate

question 109

Multiple Choice

Which of the following is irrelevant to the decision to eliminate an unprofitable segment?

• A)The segment margin
• B)Direct fixed costs
• C)Common fixed costs
• D)Segment revenue

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Definitions:

Subsidies

Financial support extended by the government to an economic sector, business, or individual, aimed at promoting beneficial activities or reducing costs.

Indirect Benefits

Advantages or gains that occur as a secondary effect of an action, activity, or policy, often not immediately apparent.

State-Supported Company

A business that receives special advantages, funding, or backing from the government.

Indirect Benefits

Advantages or gains not directly attributed to a particular action or investment but occurring as a secondary effect.