Avoidable Variable and Fixed Costs Should Be Evaluated When Deciding

question 132

True/False

Avoidable variable and fixed costs should be evaluated when deciding whether to discontinue a product,product line,business segment,or customer.

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Definitions:

Demand Factors

Various elements that influence the demand for a product or service, including price, consumer preferences, and economic conditions.

Pricing Margins

The difference between the cost of a product or service and its selling price, which is expressed as a percentage of the selling price.

Product Life Cycle

The stages a product goes through from introduction to growth, maturity, and decline in the market.

Lack of Competition

Occurs in markets where there are few competitors, potentially leading to higher prices and less innovation.