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.

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Definitions:

Olfactory Cortex

Termination of the olfactory tract in the cerebral cortex within the lateral fissure of the cerebrum.

Olfactory Bulb

Ganglion-like enlargement at the rostral end of the olfactory tract that lies over the cribriform plate; receives the olfactory nerves from the nasal cavity.

Olfactory Tract

Nerve tract that projects from the olfactory bulb to the olfactory cortex.

Transmembranous Receptor

Proteins spanning across the membrane of cells that receive chemical signals from outside the cell and initiate a response within the cell.