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:

Clinical Research

The study of health and illness in people, aimed at improving knowledge of diseases, developing treatments, and advancing medical care.

Health Insurance

A system whereby individuals pay premiums or taxes in exchange for coverage of medical costs, offering protection against high or unexpected healthcare expenses.

Gender Bias

Prejudice or discrimination against individuals based on their gender, often manifesting in workplace inequality, social norms, and institutional practices.

Medical Textbooks

Reference books containing comprehensive and authoritative information on various aspects of medicine and health.