The Decision to Continue or Discontinue a Segment of the Business

question 33

Multiple Choice

The decision to continue or discontinue a segment of the business should focus on:

• A) sales minus total variable expenses and total fixed expenses.
• B) sales minus total variable expenses and avoidable fixed expenses of the segment.
• C) sales minus total variable expenses and allocated fixed expenses of the business.
• D)none of the above.

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Definitions:

Emotional Memories

These are memories strongly influenced by the emotions experienced during the event or situation being remembered.

Recognition

The process of identifying or acknowledging something as being familiar, such as recognizing a face or a piece of music.

Recall

The act of retrieving information or memories from the past, without having the items present for recognition.

Amygdala

A part of the brain's limbic system involved in emotion regulation, memory processing, and decision-making, particularly with emotional reactions.