When Deciding Whether to Eliminate a Segment, the Segment Should

question 105

True/False

When deciding whether to eliminate a segment, the segment should be dropped if its contribution margin less the avoidable fixed costs is positive.

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Definitions:

Pelvis

A bony structure located at the base of the spine, composed of the pelvic bones (hip bones), sacrum, and coccyx, serving as the framework for the pelvis area and supporting the upper body's weight.

Reabsorption

The process by which the kidneys filter waste from the blood and reabsorb water and necessary substances back into the bloodstream.

Sodium Chloride

A chemical compound more commonly known as salt, widely used in food seasoning and preservation.

Cortex

The outer layer of various organs in the body, particularly the brain, where it is crucial for cognitive functions.