Discontinuing a Product or Segment Is a Huge Decision That

question 33

Multiple Choice

Discontinuing a product or segment is a huge decision that must be carefully analyzed.Which of the following would be a valid reason not to discontinue an operation?

• A) losses are minimal
• B) variable costs are less than revenues
• C) variable costs are more than revenues
• D) allocated fixed costs are more than revenues

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Definitions:

Technological Environmental Force

External factors related to advancements in technology that can affect the operations and competitiveness of businesses within an industry.

Demographic Characteristics

Attributes of populations, such as age, race, gender, income, and education, used in market research and policy analysis.

Social Forces

Factors that affect society’s basic structure and the behavior of its members, including values, culture, norms, and demographic characteristics.

Environmental Scanning

The process of collecting and analyzing information about elements in the external environment that could impact an organization's strategies.