When Deciding Whether to Discontinue a Segment of a Business

question 108

Multiple Choice

When deciding whether to discontinue a segment of a business, managers should focus on:

• A)equipment used by that segment that could become idle
• B)reallocation of corporate costs
• C)how total costs differ among alternatives
• D)operating income per unit of the discontinued segment

Comprehend the role of Carative Health Promoting Processes (CHPP) within Critical Caring Theory.

Grasp the significance of incorporating cultural sensitivity and spiritual dimensions in nursing practice.

Understand the role of political activism and social structures in promoting health equity through nursing practice.

Differentiate between the various carative health promoting processes and their focuses.

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Definitions:

Net Operating Income

A company's revenue minus its direct costs and operating expenses, indicating the profitability from regular operations before interest and taxes.

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the price of a product.

Net Operating Income

The profit generated from a business's normal core operations, excluding deductions of interest and taxes.

Variable Costing

An accounting method that only includes variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product cost.