In Deciding Whether to Close a Department or Division, the General

question 46

True/False

In deciding whether to close a department or division, the general rule to follow is that if the department/division makes a positive contribution, then it should not be closed, where the contribution is at least equal or greater than the income less the variable costs.

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Definitions:

Analogous Problem

A problem that shares similar features with another problem, allowing solutions or insights from one to inform the other.

Problem Solving

The process of working through details of an issue to reach a solution, often involving analytical or creative techniques.

Productive Restructuring

The cognitive process of reorganizing one’s understanding of a given subject to make the learning process more efficient.

Mental Set

A framework for thinking about a problem based on previous experiences and perceptions, which can both aid and limit problem-solving.