If a Product Has a Negative Contribution Margin, It Should

question 252

True/False

If a product has a negative contribution margin, it should not be discontinued.

Understand the process of marking up product costs to determine selling prices.

Understand the principles of job-order costing systems.

Calculate predetermined overhead rates for different production departments.

Determine the amount of overhead applied to specific jobs based on departmental rates.

---

Definitions:

Legal Formation

The process of establishing a business or organization within the framework of legal regulations, including incorporation, partnership formation, etc.

Labor Unions

Organizations formed by workers to protect their rights, improve working conditions, negotiate wages, and address grievances with employers.

Human Relations Movement

An approach to management focusing on the social aspects of work and the importance of employee needs, motivation, and relationships for productivity.

Scientific Management

A management theory that applies scientific methods and principles to the administration of businesses or organizations to increase efficiency.