Which of the Following Do Relevant Costs Exclude When Deciding

question 135

Multiple Choice

Which of the following do relevant costs exclude when deciding whether to discontinue a segment of a business?

• A)Variable marketing costs per unit of product sold
• B)Cost of goods sold
• C)Future administrative costs that will continue
• D)Fixed supervision costs that can be eliminated

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Definitions:

Formal Organizational Status

The officially recognized position or rank of an entity within an organizational structure.

Assigned Role

The specific duties and responsibilities given to an individual in an organization or a group, usually defined by their position or job description.

Emergent Role

A spontaneous role that develops naturally based on the needs and dynamics of a group rather than being formally assigned.

Disjunctive Task

A type of task in group settings where the group's performance is determined by the best individual performance within the group.