A Manager Is Attempting to Determine Whether a Segment of the Business

question 54

Multiple Choice

A manager is attempting to determine whether a segment of the business should be eliminated.The focus of attention for this decision should be on

• A)the net income shown on the segment's income statement.
• B)sales minus total expenses of the segment.
• C)sales minus total direct expenses of the segment.
• D)sales minus total variable expenses and avoidable fixed expenses of the segment.

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Definitions:

Social Conflict

A situation where individuals or groups have incompatible interests, beliefs, or actions, leading to societal tension or dispute.

Kinship Groups

Social groups based on family connections, either biological or adopted, that define relationships and obligations between members.

Structural-Functional

A theoretical framework in sociology that views society as a complex system whose parts work together to promote solidarity and stability.

Social Exchange

Social exchange is a theory in social science that explains how human relationships are formed and maintained based on an exchange process aiming at maximizing benefits and minimizing costs.