Calgary Corporation Is Closing One of Its Divisions

question 120

Multiple Choice

Calgary Corporation is closing one of its divisions. Operating data on this division follows: Sales $80,000
Variable costs 40,000
Overhead 40,000
Overhead consists of $30,000 in salary and $10,000 for rent and insurance. The salary is for the chief engineer, who will continue to work for Calgary even if the division is closed.
Rent and insurance that will cease if the division is closed is an:

• A)Unavoidable and irrelevant cost
• B)Unavoidable and relevant cost
• C)Avoidable and irrelevant cost
• D)Avoidable and relevant cost

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Definitions:

Prejudice

Preconceived opinion or judgment without proper knowledge, thought, or reason, often based on stereotypes.

Unjustified Behavior

Actions or conduct that lack a reasonable or rational basis, often viewed as inappropriate or unacceptable given the context.

Email Address

A unique identifier for an email account that allows messages to be sent and received.

Appropriateness

Describes the suitability of an action, response, or expression in a specific context, often guided by social norms or professional standards.