Assuming There Are No Other Significant Considerations,a Product Line with a Negative

question 40

True/False

Assuming there are no other significant considerations,a product line with a negative contribution margin should be dropped.

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Definitions:

Conversion Costs

Expenses incurred during the transformation of raw materials into finished goods, typically including direct labor and manufacturing overhead costs.

Neither

Not one nor the other of two specified things, typically used to express a negation.

Depreciation Expense

Spreading out the price of a tangible asset across its period of utility.

Prime Costs

The combined costs of direct materials and direct labor, which are directly attributable to the production of goods.