The Decision to Continue or Discontinue a Segment of the Business

question 85

Multiple Choice

The decision to continue or discontinue a segment of the business should focus on:

• A)sales minus total variable expenses and total fixed expenses.
• B)sales minus total variable expenses and avoidable fixed expenses of the segment.
• C)sales minus total variable expenses and allocated fixed expenses of the business.
• D)None of the answers are correct.

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Definitions:

Max Weber

A German sociologist, philosopher, and political economist who is considered one of the founders of modern sociology, known for his analysis of the development of Western capitalism and the concept of rationalization.

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These are relationships between individuals or organizations and the political realm that can provide advantages in business or personal endeavors.

Managerial Ethics

Principles and standards governing the conduct of managers in their professional actions.

Corporate Social Responsibility

An approach in business aimed at fostering sustainable growth by ensuring economic, societal, and ecological gains for all parties involved.