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:

Routing Patterns

The planned paths or sequences followed by people or goods as they move from one location to another.

ELMS System

An acronym that could refer to various systems, commonly denoting an Electronic Learning Management System.

80/20 Principle

Also known as the Pareto Principle, it suggests that roughly 80% of effects come from 20% of causes, commonly applied in business and economics.

FAB Closing

A sales technique that emphasizes the Features, Advantages, and Benefits of a product or service during the closing phase of a sales pitch.