All of the Following Are Relevant in Deciding Whether to Eliminate

question 107

Multiple Choice

All of the following are relevant in deciding whether to eliminate an unprofitable segment except the segment's

• A) sales.
• B) variable expenses.
• C) contribution margin.
• D) fixed expenses.

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Definitions:

Receivable Averages

A metric that calculates the average amount of accounts receivable over a certain period to assess a company's efficiency in collecting money owed.

Interest Revenue

The income earned from lending money or investing in interest-bearing assets.

Income Statements

Financial statements that show a company's revenue, expenses, and profit over a specific period.

Notes Receivables

Financial assets representing amounts owed to a company, evidenced by a written promise to pay the specified amount of money at a certain date.