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.

Explain the processes through which organizations integrate and adapt to their cultures.

Understand the concept of subcultures and countercultures within an organization.

Define innovation in organizations and describe the steps involved in the innovation process.

Discern how organizational cultures impact innovation and change management.

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Definitions:

Hamburgers

A type of food consisting of a cooked patty of ground meat, typically beef, placed inside a sliced bread roll or bun.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than others.

Opportunity Cost

The value of the best alternative foregone as a result of making a decision, a fundamental concept in economics that emphasizes the cost of trade-offs.

Production Possibility Frontier

A diagram that outlines every possible maximal production scenario for various items, considering a fixed amount of resources.