Discontinuing Unprofitable Products Will ________

question 196

Multiple Choice

Discontinuing unprofitable products will ________.

• A) increase profitability if the resources no longer required by the discontinued product can be eliminated
• B) increase profitability if capacity constraints are adjusted
• C) decrease profitability if the fixed costs does not change after discontinuing the particular business segment
• D) increase profitability when a large portion of the fixed costs are unavoidable

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Definitions:

Region of Origin

The geographic area or location where something or someone comes from or is considered to have started.

University

An institution of higher education and research which awards academic degrees in various disciplines, providing both undergraduate and postgraduate education.

Recreation Centre

A facility that provides a variety of activities, amenities, and services for recreational and fitness purposes to the public.

Physical Activities

Any bodily movement produced by skeletal muscles that requires energy expenditure.