In Deciding Whether to Eliminate a Segment of a Business,an

question 130

Essay

In deciding whether to eliminate a segment of a business,an important issue is the identification of common costs.ans the following questions relating to common costs.
a.What is a common fixed cost?
b.Is a common fixed cost considered relevant?
c.Give two examples of common fixed costs.
d.What happens to common fixed costs if a segment is eliminated?

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Definitions:

Arousal

A physiological and psychological state of being awake or reactive to stimuli, often involving the autonomic nervous system.

Hindbrain

The posterior part of the brain comprising structures such as the medulla, pons, and cerebellum, involved in regulating basic physiological processes and movement.

Cerebellum

A part of the brain at the back of the skull in vertebrates, responsible for coordinating and regulating voluntary muscle movements, balance, and posture.

Coordination

The organization of different elements or activities to enable them to work together effectively.