Which of the Following Criteria Should Be Used When Making

question 36

Multiple Choice

Which of the following criteria should be used when making a decision about whether or not to drop a market segment?

• A) Total contribution margin of the segment
• B) Contribution margin available to cover indirect fixed costs
• C) Net income of the segment
• D) Segment margin available to cover indirect fixed costs

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Definitions:

Thirteenth Amendment

Amendment to the United States Constitution that abolished slavery and involuntary servitude, except as punishment for a crime.

Slavery

A practice or system in which individuals are owned as property by others and are forced to work without rights or compensation.

Private Individuals

Persons who act in their own interest or behalf, without holding any public or official position, typically in the context of private life or business.

Bill of Rights

The first ten amendments to the United States Constitution, guaranteeing essential rights and protections, such as freedom of speech and religion.