A Segment of a Business Should Probably Be Discontinued If

question 121

Multiple Choice

A segment of a business should probably be discontinued if

• A)its common costs exceed its contribution margin.
• B)its contribution margin exceeds its controllable fixed costs and its common costs.
• C)it has a net loss.
• D)cannot produce a positive contribution margin.

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Definitions:

Positive Emotions

Emotions that are associated with positive feelings and experiences, such as joy, gratitude, contentment, and love.

Outlooks

Perspectives or attitudes towards particular issues or situations.

Intellectual Resources

Intellectual resources refer to the knowledge, information, intellectual property, and skills that individuals or organizations possess, which can be utilized for academic, professional, or creative endeavors.

Creative Potential

The capacity or ability of an individual to generate new ideas, concepts, or solutions.