Indicate Whether Each of the Following Statements Is True or False

question 97

Short Answer

Indicate whether each of the following statements is true or false.
1. In making a decision to eliminate a segment of a business, managers should compare differential revenues for the segment to its avoidable costs.
2. Eliminating one segment of a business generally has no effect on the other segments.
3. Eliminating one segment of a business has no effect on the customers of the other segments.
4. The opportunity cost, alternative use for facilities, should be considered in deciding whether to retain a segment of a business.
5. A decision to eliminate a segment of a business is likely to have long-term consequences because re-establishing the segment might be difficult.

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Definitions:

Parietal Bones

A pair of bones forming the sides and roof of the cranium (skull), each positioned above the temporal bone and behind the frontal bone.

Sagittal

Relating to or in a plane that divides the body into right and left parts, often used in anatomical descriptions.

Rooting Reflex

A reflex in newborns that causes them to turn their head toward a touch on their cheek, aiding in breastfeeding.

Extrusion

The process of shaping material by forcing it through a die or similar device, or the expulsion of something from its container.