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:

Tariff on Imports

A levy placed on imported goods and services by a government to shield local industries from overseas competition.

Total Output

The complete quantity of goods or services produced by a company, sector, or economy within a specific timeframe.

Exports

Sales of goods or services produced in one country purchased by residents of another country.

Imported Goods

Goods brought into a country from abroad for sale.