If a Firm Shuts Down in the Short Run,then

question 103

Multiple Choice

If a firm shuts down in the short run,then

• A)total revenue and total cost drop to zero
• B)total revenue drops to zero,but the firm must still pay its fixed cost
• C)total revenue drops to zero,but the firm must still pay some variable cost
• D)total cost drops to zero,but the firm still earns some residual revenues
• E)neither total revenue nor total cost drops to zero

Calculate and interpret net operating income for a company based on segmented financial data.

Understand the concept of super-variable costing and its application in managerial decision making.

Differentiate between super-variable costing and other costing methods in terms of their impact on net operating income.

Calculate break-even sales for business divisions under various costing scenarios.

---

Definitions:

Misbehavior

Actions or conduct that are inappropriate or violate expected rules and norms within a given context.

Unconscious Mental Activity

Activity of the mind that occurs without conscious awareness, influencing thoughts, feelings, and behaviors, a key concept in psychoanalytic theory.

Axiom

A statement or proposition that is regarded as being established, accepted, or self-evidently true.