Which of the Following Would Not Be Considered an Example

question 131

Multiple Choice

Which of the following would not be considered an example of a discontinued operation?

• A)Shifting production processes within an operation
• B)Elimination of a major class of customers
• C)Elimination of an entire activity
• D)Disposal of a significant component of a business

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Definitions:

Variable Cost

Costs that vary in proportion to the volume of goods or services produced, such as materials and labor.

Fixed Costs

Definition: Business expenses that remain the same regardless of the level of production or sales.

Break-Even Point

The moment when the sum of all expenses matches the sum of all income, resulting in neither a profit nor a loss.

Revenue

The total income generated from the sale of goods or services related to a company's primary operations.