In Deciding Whether to Eliminate a Segment of a Business

question 84

Essay

In deciding whether to eliminate a segment of a business, an important issue is the identification of common costs.Answer the following questions relating to common costs.
a.What is a common fixed cost?
b.Is a common fixed cost considered relevant?
c.Give two examples of common fixed costs.
d.What happens to common fixed costs if a segment is eliminated?

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Definitions:

Strength Improvement

Strength Improvement involves exercises or activities designed to increase muscle mass, power, and endurance.

Endurance

The ability to sustain physical or mental activity for extended periods of time.

Lentigo Senilis

A flat, brownish spot on the skin commonly occurring in older adults due to sun exposure, also known as age spot.

Brown Spots

Pigmented areas on the skin, often caused by sun exposure, aging, or other factors, that can range in color from light brown to black.