In Deciding Whether to Drop Its Electronics Product Line,a Company's

question 63

Multiple Choice

In deciding whether to drop its electronics product line,a company's manager should ignore ________.

• A) the variable and fixed costs it could save by dropping the product line
• B) the revenues it would lose from dropping the product line
• C) the effect of dropping the electronics product line on the sales of its other products
• D) the amount of unavoidable fixed costs

---

Definitions:

Current Ratio

A financial metric that indicates a company's ability to meet short-term liabilities with its short-term assets.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year with its current assets.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing the ownership interest of shareholders.

Current Assets

Short-term assets that are expected to be converted into cash, sold, or consumed within one year or a business cycle, whichever is longer.