All of the Following Are Considerations for Discontinuing a Product

question 27

Multiple Choice

All of the following are considerations for discontinuing a product or product line, except

• A)whether the product has a positive or negative contribution margin.
• B)not having any free capacity.
• C)if discontinuing the product or product line will affect sales of remaining products.
• D)determining if direct fixed costs could be avoided if the product or product line is discontinued.

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Definitions:

Long Term

Referring to an extended period of time, often focusing on strategic planning, investments, or goals that will take several years to achieve.

Customer Interest

The preferences, needs, and desires of consumers that influence their purchasing decisions.

Marketing Channels

The pathways through which goods and services flow from producer to the end consumer.

Power Shift

A significant change in the balance of power within an industry, market, or between nations, often due to technological innovation, market forces, or sociopolitical changes.