When a Department or Product Line Is Dropped, the Common

question 40

Multiple Choice

When a department or product line is dropped, the common fixed costs that had been allocated to that department

• A)are eliminated.
• B)become variable costs.
• C)are allocated to the remaining departments or product lines.
• D)become sunk costs.

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Definitions:

Target Area

The specific region or sector that is the focus of a particular activity, study, or interest.

Touch Sensation

Touch sensation is the perception of physical contact realized through the skin, mainly through the activation of nerve endings, providing information about pressure, texture, and temperature.

Sensory System

A part of the nervous system responsible for processing sensory information received from the environment.

Thalamus

A brain structure that acts as a relay station, processing and transmitting sensory information to the appropriate areas of the brain for further processing.