Eliminating a Product or Segment May Have the Long-Term Effect

question 19

True/False

Eliminating a product or segment may have the long-term effect of reducing fixed costs.

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Definitions:

Subsequent Agreement

An agreement made after a written agreement that alters or cancels the written agreement.

Verbal Agreement

An oral contract that is formed through spoken communication rather than in writing, though its legal enforceability varies by jurisdiction.

Guarantee

A collateral promise (in writing) to answer for the debt of another (the principal debtor) if the debtor should default in payment.

Demand for Payment

A formal request issued by a creditor to a debtor requiring payment of an outstanding debt by a specific date.