Directions: Apply the Knowledge You Have Gained from Chapter 4

question 4

Multiple Choice

Directions: Apply the knowledge you have gained from Chapter 4 to select the best answer to the questions about the following cluster diagram.

What is the best answer below for the bubble marked "Y"?

• A) filing papers in a local law office
• B) stocking shelves at a hardware store
• C) washing dishes in the school cafeteria
• D) none of the above

---

Definitions:

Segment Margin

The amount of profit or loss generated by a particular segment of a business, after accounting for the direct costs and overheads attributable to that segment.

Avoidable Cost

Expenses that can be eliminated if a particular decision or action is not pursued.

Special Order

A special order is an order for goods or services that is outside the company's normal scope of operations or production schedule, often requiring special pricing or terms.

Minimum Selling Price

The lowest price at which a product can be sold to cover its production costs without making a loss.