Which of the Following Statements Is True

question 86

Multiple Choice

Which of the following statements is true?

• A)Common costs should be considered when deciding to drop a product line.
• B)If a segment of a company has been losing money for several years, that segment should be dropped.
• C)If an unprofitable segment is dropped, the company's net income will increase.
• D)If an unprofitable segment is dropped, fixed costs will decrease.

---

Definitions:

Disparate Impact

Practices in employment, housing, or other areas that adversely affect one group more than another, often unintentionally, leading to discrimination claims.

Life Insurance

A type of insurance that pays out a sum of money either on the death of the insured person or after a set period, intended primarily to provide financial protection to beneficiaries.

Health Insurance

An insurance policy designed to cover the cost of medical and surgical procedures for the person insured.

Restitution

Compensatory measures taken to restore a party harmed by a breach of contract or wrong to their original position before the violation occurred.