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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