Which of the Following Statements Describes a Scenario When Management

question 80

Multiple Choice

Which of the following statements describes a scenario when management should consider dropping a business division?

• A) The division has been consistently reporting an operating loss.
• B) The division's avoidable fixed costs are less than its contribution margin.
• C) The division's avoidable fixed costs are greater than its contribution margin.
• D) The division's unavoidable fixed costs are greater than its operating loss.

---

Definitions:

ADHD

Attention-Deficit/Hyperactivity Disorder, a neurodevelopmental disorder characterized by levels of inattention, disorganization, and/or hyperactivity-impulsivity that are not appropriate for a person's age.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Smaller-than-normal Brain Size

A condition where the physical size of the brain is below the average for the individual's age and sex.

Premature Delivery

The birth of a baby before the completion of 37 weeks of pregnancy, potentially leading to health challenges for the newborn.