When Deciding Whether to Discontinue a Segment of a Business

question 112

Multiple Choice

When deciding whether to discontinue a segment of a business, relevant costs include ________.

• A) auditing expenses for the whole company
• B) fees paid to a management consultant to study the feasibility of the business segment
• C) annual insurance costs of the company
• D) future administrative costs that can be eliminated

---

Definitions:

Certain Time Span

A specific period or duration of time, defined by start and end points.

Descent Groups

Social groups whose members claim common ancestry; fundamental to the social organization of many societies.

Entire Society

Pertains to all members and aspects of a specific community or population, encompassing its culture, institutions, and individuals.

Social Organization

The structured patterns of relationships and roles found within societies that organize and coordinate collective human activities.