When Deciding Whether to Discontinue a Segment of a Business

question 112

Multiple Choice

When deciding whether to discontinue a segment of a business, relevant costs include ________.

• A) auditing expenses for the whole company
• B) fees paid to a management consultant to study the feasibility of the business segment
• C) annual insurance costs of the company
• D) future administrative costs that can be eliminated

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Definitions:

Functional Manager

A manager responsible for a specific department or function within an organization, such as finance, marketing, or operations.

Single Area

Concentrating or focusing efforts, resources, or operations in one particular or specific domain or location.

Team Leaders

Individuals who are responsible for guiding, directing, and managing the dynamics and performance of a team to achieve set objectives.

External Environment

All outside factors and influences that impact the operations and success of an organization, including economic, legal, political, and social conditions.