A Segment of a Business Probably Should Be Discontinued If

question 85

Multiple Choice

A segment of a business probably should be discontinued if

• A) its common costs exceed its contribution margin.
• B) its contribution margin exceeds its controllable fixed costs and its common costs.
• C) it cannot produce a contribution margin.
• D) it has a net loss.

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Definitions:

Motion

The action or process of moving or being moved, fundamental to physics principles.

Intramuscular

Referring to an injection given directly into the muscle.

Abbreviation

The shortened form of a word or phrase used to save space or avoid repetition.

LOM

Limitation of Motion, a term used to describe the restricted movement of a limb or joint.