Which of the Following Statements Describes a Scenario When Management

question 59

Multiple Choice

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

• A)The division has been reporting an operating loss consistently.
• 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:

File Folder

A folder used to hold and organize documents or papers.

Filing Supply

Materials and tools used for organizing documents, such as folders, labels, cabinets, and dividers.

Numeric Filing System

A filing system that organizes files by numbers instead of names. Each patient is assigned a number in the order in which she joins the practice.

Filing System

An organized method of storing information or documents for easy retrieval and maintenance.