Which of the Following Statements Describes a Scenario When Management

question 80

Multiple Choice

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

• A) The division has been consistently reporting 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.

---

Definitions:

Formally Assessing

The systematic evaluation of something using established procedures or criteria to determine its value or quality.

Work Accomplishments

Achievements or completed tasks in a professional setting that contribute to an organization's goals.

Evaluation Purpose

The objective or reason behind assessing the performance, quality, or value of a person, product, or idea.

Training

The provision of learning opportunities to acquire and improve job-related skills.