If a Segment Is Dropped,remaining Segments Must Have Sufficient Contribution

question 20

Multiple Choice

If a segment is dropped,remaining segments must have sufficient contribution margin to cover their own direct costs and the

• A)avoidable costs.
• B)common costs.
• C)uncommon costs.
• D)none of these choices.

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Definitions:

Procurement

The process of obtaining goods or services, often involving tendering or bidding, to fulfill organizational needs.

Functional Strategies

Specific strategies targeting the operations and objectives within a particular business function, such as marketing, finance, or production.

Competitive Strategy

A long-term plan formed by a company to gain an advantageous position over its competitors, typically involving efforts to offer unique value to customers.

Intercompany Scope

The extent of activities, transactions, and engagements that take place between different entities within the same corporate group or parent company.