Which of the Following Statements Describes a Scenario When Management

question 147

Multiple Choice

Which of the following statements describes a scenario when management should consider dropping a business division?

• A) The division has consistently reported an operating loss.
• B) The division's avoidable fixed costs are less than its contribution margin.
• C) The division's avoidable fixed costs are greater than its contribution margin.
• D) The division's unavoidable fixed costs are greater than its operating loss.

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Definitions:

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Clinical Psychology

A branch of psychology focused on diagnosing, treating, and understanding mental, emotional, and behavioral disorders.

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Relating to mental processes involved in acquiring knowledge and understanding through thought, experience, and the senses.