Consider the Following Statements: I

question 152

Multiple Choice

Consider the following statements: I. A division's net operating income, after deducting both traceable and allocated common fixed costs, is negative.
II) The division's avoidable fixed costs exceed its contribution margin.
III) The division's traceable fixed costs plus its allocated common corporate costs exceed its contribution margin.
Which of the above statements is a valid reason for eliminating the division?

• A)Only I
• B)Only II
• C)Only III
• D)Only I and II

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Definitions:

Leadership Qualifications

The skills, knowledge, and personal attributes considered necessary for effective leadership, such as strategic thinking, communication abilities, and integrity.

Charismatic Leadership

A style of leadership that draws on the leader's personal charm and appeal to inspire and energize followers toward achieving a vision or goals.

Excessive Confidence

An overstated belief in one's abilities, skills, or achievements, often without sufficient evidence or justification.

Real Dangers

Genuine threats or risks that could cause harm or negative outcomes.