If an Unprofitable Segment Is Eliminated

question 172

Multiple Choice

If an unprofitable segment is eliminated

• A) it is impossible for net income to decrease.
• B) fixed expenses allocated to the eliminated segment will be eliminated.
• C) variable expenses of the eliminated segment will be eliminated.
• D) it is impossible for net income to increase.

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Definitions:

Brevis

Refers to a muscle that is short in length, commonly used in anatomical names of muscles that are shorter than a nearby muscle (e.g., Flexor Pollicis Brevis).

Short

Having a small distance from one end to the other, not long.

Wide

Encompassing a large extent or breadth; not narrow.

Sarcomeres

The basic structural and functional unit of a muscle fiber, responsible for muscle contraction.