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.

---

Definitions:

Thermostat

A device that regulates the temperature of a system or environment.

Purple Wristband

In a healthcare setting, a purple wristband typically indicates a patient has a "do not resuscitate" (DNR) order.

Restrain

The act of holding someone back or restricting their movement, often for safety or control reasons.

Apical Pulse

The heart rate as measured at the apex of the heart, usually detected through a stethoscope placed on the chest's left side under the breast.