In Deciding Whether to Add or Delete a Product, Service

question 65

Multiple Choice

In deciding whether to add or delete a product, service, or department, the salary of the plant manager is an _____.

• A)avoidable fixed cost
• B)avoidable variable cost
• C)unavoidable fixed cost
• D)unavoidable variable cost

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Definitions:

Liability

A legal responsibility or obligation that arises from actions, claims, or debts.

Delegation

The act of transferring responsibility and authority from one person or group to another.

Assignment

An assignment involves the transfer of rights or property from one party to another, typically related to contracts, but also applicable in other legal contexts.

Third-Party Beneficiary

An individual or group that stands to benefit from a contract made between two other parties, even though they are not a direct party to the contract.