In a Decision Relating to the Possible Elimination of a Department

question 54

Multiple Choice

In a decision relating to the possible elimination of a department consideration would need to be given to which of the following factors?
I. Alternative uses of the space currently occupied by the department
II. Adverse effect of the elimination of sales of other departments
III. Whether all of the direct operating expenses are avoidable

• A) None of the factors.
• B) I and III only.
• C) I and II only.
• D) I, II and III.

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