When Considering Whether or Not to Drop a Market Segment

question 90

Multiple Choice

When considering whether or not to drop a market segment of a business, past costs that CANNOT be recovered regardless of whether the segment is dropped are:

• A) Opportunity costs
• B) Variable costs
• C) Sunk costs
• D) Relevant costs

---

Definitions:

Spectrum

A range of values or conditions, often specifically pertaining to the distribution of energy emitted or absorbed by a substance, visible in bands of colors or intensities.

IR Spectroscopy

A technique used in analytical chemistry to identify molecular structure through the absorption of infrared radiation by molecules, leading to vibrational and rotational changes.

Electronegativity

A measure of the tendency of an atom to attract a bonding pair of electrons towards itself in a molecule.

Frequency

The number of occurrences of a repeating event per unit time.