What Decision Rule Should Be Followed When Deciding If a Business

question 83

Multiple Choice

What decision rule should be followed when deciding if a business segment should be eliminated?

• A)Segments generating a net loss should always be eliminated.
• B)Segments with revenues that are more than avoidable expenses should be considered for elimination.
• C)Segments with revenues that are more than unavoidable expenses should be considered for elimination.
• D)Segments with revenues that are less than avoidable expenses should be considered for elimination.
• E)Segments with revenues that are less than unavoidable expenses should be considered for elimination.

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Definitions:

Reduction

The process of decreasing or making something smaller in size, amount, or degree.

Dorsiflexion

The action of raising the foot upwards towards the shin, decreasing the angle between the foot and shin.

Protraction

The movement of a body part forward, away from the midline of the body.

Tubercle

A small rounded projection or nodule, often part of a bone or organ, or referring to a lesion seen in tuberculosis.