When a Company Decides to Dispose of a Particular Line

question 43

Multiple Choice

When a company decides to dispose of a particular line of operation by selling it to another company,the related assets should

• A)be written up in anticipation of a gain on disposal.
• B)be considered scrap material.
• C)be held at historical cost.
• D)be written down on the expectation of a loss on disposal.

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Definitions:

Category Management

A retail and purchasing concept where the range of products purchased by a business or sold by a retailer is managed as a strategic business unit.

Merchandising Technique

Strategies and practices employed by companies to promote the sale of goods, often through effective display and presentation in retail environments.

Demand-driven Merchandising

Demand-driven Merchandising is a retail strategy that focuses on creating and stocking products based on consumer demand, trends, and purchase data.

Shelf Space

The amount of space allocated for displaying a product in a retail store, crucial for visibility and sales.