In a Decision as to Whether or Not to Drop

question 140

True/False

In a decision as to whether or not to drop a product, fixed costs that have been allocated to that product are generally not relevant unless there is a savings of fixed costs as a result of dropping the product.

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Definitions:

Disadvantages

The negative aspects or drawbacks associated with a particular decision, situation, product, or service.

Sales Promotion

Marketing activities designed to increase sales in the short term, often through discounts, coupons, or special offers.

Main Street

Typically refers to the main thoroughfare in a town or city, often a center for local businesses and commerce, symbolizing the economic and social heart of a community.

Retailer

A business that sells goods to the public in relatively small quantities for use or consumption rather than for resale.