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:

D-Motivation

The drive or desire to achieve something, often diminished or lacking in certain contexts or individuals.

Scientifically Rigorous

Characterized by the strict application of scientific methods and principles to ensure validity and reliability.

Nobel Prize Winners

Individuals who have been awarded the Nobel Prize, prestigious awards given annually in several categories (such as Peace, Literature, and various Sciences) in recognition of outstanding contributions to humanity.

Self-Actualizers

Individuals who reach their fullest potential, achieving their highest needs and capabilities, as per Maslow's hierarchy.