If an Unprofitable Segment Is Eliminated

question 172

Multiple Choice

If an unprofitable segment is eliminated

• A) it is impossible for net income to decrease.
• B) fixed expenses allocated to the eliminated segment will be eliminated.
• C) variable expenses of the eliminated segment will be eliminated.
• D) it is impossible for net income to increase.

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Definitions:

Colic

Intense, unpredictable abdominal pain or cramping often seen in infants, thought to be linked to gastrointestinal discomfort.

Sudden Infant Death Syndrome (SIDS)

The unexplained death, usually during sleep, of a seemingly healthy baby less than a year old, often related to sleep environment factors.

Emergency Department

A specialized unit in a hospital providing immediate treatment to patients with acute illnesses or injuries.

Iron Supplement

A dietary supplement used to increase the level of iron in the body, typically used to treat or prevent iron-deficiency anemia.