A Strategy of Dropping a Product from the Product Line

question 27

Multiple Choice

A strategy of dropping a product from the product line during the decline stage of the product life cycle is referred to as

• A) trimming.
• B) elimination.
• C) paring down.
• D) deletion.
• E) harvesting.

---

Definitions:

Locomotive Division

A business segment within a larger company that specializes in the development, manufacture, or maintenance of locomotives.

Income From Operations

Another term for operating income, representing profit from a company's regular business activities but excluding extraordinary items and expenses like taxes and interest.

Service Department Charges

Expenses allocated to the production or service departments, originating from support departments for costs incurred.

Operating Expenses

Costs associated with the normal operations of a business, excluding the costs of goods sold, such as rent, utilities, and payroll.