All of the Following Are Relevant in Deciding Whether to Eliminate

question 107

Multiple Choice

All of the following are relevant in deciding whether to eliminate an unprofitable segment except the segment's

• A) sales.
• B) variable expenses.
• C) contribution margin.
• D) fixed expenses.

---

Definitions:

Overhead Assigned

The allocation of overhead costs to specific jobs or cost objects based on a predetermined rate or method.

Product X0

A specific product identifier used in inventory and production tracking, symbolizing a unique item or variant within a company's product line.

Overhead Applied

The portion of manufacturing overhead costs assigned to each unit of production, based on a predetermined rate.

Activity-Based Costing

A method of accounting that assigns costs to products or services based on the activities they require.