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:

Inexpensive

describes an item or service that does not cost a lot of money, making it readily affordable.

Family Therapist

A mental health professional who specializes in analyzing and treating family dynamics and issues within the context of family relationships.

Psychoanalyst

A psychoanalyst is a professional who practices psychoanalysis, exploring unconscious motivations and conflicts to treat mental disorders.

Gestalt Therapist

A psychotherapist who focuses on the individual's experience in the present moment, the therapist-patient relationship, the environmental and social contexts of a person's life, and the self-regulating adjustments people make as a result of their overall situation.