A Product Line Should Be Dropped When

question 74

Multiple Choice

A product line should be dropped when

• A)it has a positive contribution margin.
• B)it has unavoidable fixed costs.
• C)there will be a positive change in income if the product line is dropped.
• D)All of these answer choices are correct.

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Definitions:

Exponential Smoothing

A weighted moving average technique that applies decreasing weights to older data points, used for time-series data analysis.

Recent Data

Recent Data refers to the latest or most contemporary data available in a dataset, useful for making current analyses or predictions.

Smoothing Calculation

A mathematical process used to remove short-term fluctuations and highlight longer-term trends or cycles in data sets.

Cyclical Component

A pattern in a time series data set that occurs at regular or predictable intervals, often related to economic cycles.