A Common Mistake Managers Make in Deciding to Close a Division

question 31

Multiple Choice

A common mistake managers make in deciding to close a division is

• A)Allowing allocated fixed costs to influence the decision.
• B)Allowing qualitative issues to influence the decision.
• C)Allowing avoidable costs to influence the decision.
• D)All of these ans choices are correct.

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Definitions:

Percent

A ratio or fraction expressed as a part of 100 denoting a proportion of a whole.

Anxiety Disorders

Psychological disorders characterized by frequent fearful thoughts about what might happen in the future.

Excessive Fearfulness

An overwhelming and often irrational sense of fear that exceeds normal anxiety levels and can interfere with daily activities.

Unrealistic Worry

Excessive concerns or fears about events or situations that are highly unlikely to occur or are out of proportion to their actual risk.