Managers Should Discontinue a Business If Which of the Following

question 44

Multiple Choice

Managers should discontinue a business if which of the following is less than the sum of relevant fixed costs and opportunity costs?

• A) Profit
• B) Variable cost
• C) Total cost
• D) Contribution margin

Recognize the importance of allocating indirect expenses in departmental accounting accurately.

Understand the significance of sales, cost of goods sold, and operating expenses in determining departmental financial performance.

Learn how to evaluate the performance of individual departments using departmental income statements.

Distinguish between direct and indirect expenses and their implications on departmental profitability.