Which Is Not a Consideration for Dropping a Product or Product

question 179

Multiple Choice

Which is not a consideration for dropping a product or product line?

• A) Whether the product has a positive or negative contribution margin
• B) If dropping the product or product line will affect sales of remaining products
• C) Not having the need for free capacity
• D) Determining if direct fixed costs could be avoided if the product or product line is dropped

---

Definitions:

Multinational Corporation

A company that operates in multiple countries, managing production or delivering services in more than one country beyond its home base.

Chemical Factory

An industrial site dedicated to producing chemicals where raw materials are processed and combined through chemical reactions.

Carpet Factory

A manufacturing facility where carpets and rugs are produced, typically involving various stages of design, weaving, and finishing.

Global Corporation

A multinational enterprise or multinational corporation that conducts commercial transactions across national boundaries.