Which of the Following Statements Describes a Scenario When Management

question 42

Multiple Choice

Which of the following statements describes a scenario when management should consider dropping a business division?

• A)The division's avoidable fixed costs are less than its contribution margin.
• B)The division has consistently reported an operating loss.
• C)The division's unavoidable fixed costs are greater than its operating loss.
• D)The division's avoidable fixed costs are greater than its contribution margin.

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Definitions:

Content Validity

Refers to the extent to which a test measures an intended content area.

Concurrent Validity

The degree to which the results of a test correlate with the results of other established measures taken at the same time.

Test-retest Reliability

Test-retest reliability is a measure of the consistency of a psychological test or assessment's results over time when administered to the same individuals on separate occasions.

Content Validity

pertains to how well a test measures every aspect of the specified domain or topic it is intended to assess.