When Deciding Whether to Discontinue a Segment of a Business,managers

question 43

Multiple Choice

When deciding whether to discontinue a segment of a business,managers should focus on:

• A)unavoidable fixed costs.
• B)reallocation of corporate costs.
• C)contribution margin and avoidable fixed costs of the segment.
• D)operating income per unit of the discontinued segment.

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Definitions:

Pinna

The visible part of the ear that is outside the head, involved in directing sound into the ear canal.

Ceruminous

Related to special sweat glands in the ear canal that produce earwax, which helps to protect and lubricate the ear.

Sebaceous

Relating to or denoting glands in the skin that secrete sebum into hair follicles.

Mammary

Pertaining to the mammary glands, which are the milk-producing glands located in the breasts of female mammals.