If an Operating Division or a Product Line of a Company

question 95

Multiple Choice

If an operating division or a product line of a company was eliminated, which of the following statements would be TRUE?

• A) Traceable fixed costs would be eliminated.
• B) Untraceable fixed costs would be eliminated.
• C) Variable costs of the product would continue, but be reallocated elsewhere.
• D) Traceable fixed costs would continue, but would have to reallocated elsewhere.

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Definitions:

Notice of Dishonor

A formal notification that a negotiable instrument, like a check, has been refused payment.

Dishonored

Refers to the refusal or inability to pay a financial obligation when due, such as a bounced check or a default on a payment.

Notice of Dishonor

A formal notification indicating that a financial instrument, like a check or draft, has been presented for payment and refused.

Collection Bank

A financial institution involved in processing checks and payments on behalf of other banks or entities.