Which Is NOT a Consideration for Dropping a Product or Product

question 81

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 any free capacity
• D)Determining if direct fixed costs could be avoided if the product or product line is dropped

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Definitions:

Placebo Effect

The apparent success of a medication or treatment due to the patient’s expectations or hopes rather than to the drug or treatment itself.

Novelty Bias

The tendency of individuals to prefer novel objects or experiences over familiar ones.

Therapeutic Window

The range of drug dosages which can treat disease effectively while staying within the safety margin, minimizing the risk of side effects.

Therapeutic Alliance

The bond of confidence and mutual understanding established between therapist and client, which allows them to work together to solve the client’s problems.