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:

Independent Variable

In an experiment, the variable that is manipulated or changed by the researcher to observe its effects on the dependent variable.

Nicotine

A stimulant and addictive substance found in tobacco products that impacts the central nervous system.

Real Cigarette

Refers to traditional tobacco cigarettes, as opposed to electronic cigarettes or other smoking alternatives.

Control Group

In experimental research, a group of subjects that does not receive the experimental treatment and is used as a benchmark to measure the effects of the treatment.