Discontinuing a Product or Segment Is a Huge Decision That

question 81

Multiple Choice

Discontinuing a product or segment is a huge decision that must be carefully analyzed. Which of the following would be a valid reason not to discontinue an operation?

• A) Losses are minimal.
• B) Variable costs are less than revenues.
• C) Variable costs are more than revenues.
• D) Allocated fixed costs are more than revenues.

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Definitions:

GPS

Global Positioning System, a satellite-based navigation system that provides location and time information in all weather conditions, anywhere on or near the Earth.

Drones

Unmanned aerial vehicles (UAVs) controlled remotely or autonomously, used for various purposes including surveillance, photography, and delivery.

Mobile Health (Mhealth)

A type of health service delivery using mobile devices such as smartphones, tablet computers, and PDAs for managing patient care, health education, and remote monitoring.

Smartphone

A mobile phone with advanced features, including internet access, apps, and often a touch screen interface.