In Deciding Whether to Drop Its Electronics Product Line,a Company's

question 160

Multiple Choice

In deciding whether to drop its electronics product line,a company's manager should ignore ________.

• A)the variable and fixed costs it could save by dropping the product line
• B)the revenues it would lose from dropping the product line
• C)the effect of dropping the electronics product line on the sales of its other products,like CDs
• D)the amount of unavoidable fixed costs

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Definitions:

Intangible Assets

Non-physical assets that provide economic benefits to their owners, such as patents, copyrights, trademarks, and goodwill.

Balance Sheet

A financial statement that showcases a company's assets, liabilities, and stockholders' equity at a specific point in time.

Current Asset

Assets that are expected to be converted into cash, sold, or consumed within one year or the normal operating cycle of the business, whichever is longer.

Fraud Triangle

A theoretical model that asserts three factors must be present for an individual to commit fraud: motivation, opportunity, and rationalization.