Discontinuing a Product or Segment Is a Huge Decision That

question 98

Multiple Choice

Discontinuing a product or segment is a huge decision that must be carefully analyzed. Which of the following would be a valid reason not to discontinue an operation?

• A) The losses are minimal.
• B) The variable costs are less than revenues.
• C) The variable costs are more than revenues.
• D) The allocated fixed costs are more than revenues.

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Definitions:

Tactics

Strategies or maneuvers used to achieve a specific goal or outcome.

Guilty

A state of having committed an offence or violation against moral or penal law.

Performance

The act of executing a task or job effectively and efficiently, often measured against pre-established standards or objectives.

Older Workers

Individuals in the workforce who are generally considered to be near or beyond the traditional age of retirement, often characterized by vast experience and knowledge.