In Deciding Whether to Add or Delete a Product,the Insurance

question 109

Multiple Choice

In deciding whether to add or delete a product,the insurance expense associated with the custom-built equipment used to produce the product is an ________ cost.Assume the equipment will be sold if the company discontinues the product.

• A) avoidable fixed
• B) avoidable variable
• C) unavoidable fixed
• D) unavoidable variable

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Definitions:

Net Investment

The aggregate expenditure of a business or economy on capital assets, after subtracting depreciation.

Karl Marx

A 19th-century philosopher, economist, and political theorist known for his critiques of capitalism and his development of the theory of communism.

Savings

Funds that are set aside by individuals or entities, often in financial institutions, for future use or investment.

Inheritance Laws

Legal statutes and regulations that govern the distribution of a deceased person's estate among their heirs or designated beneficiaries.