Bone Dry Retailers Is Considering Closing Down One of Its

question 30

Multiple Choice

Bone Dry retailers is considering closing down one of its low-profit departments. Assume that discontinuance of this department will not affect sales of the remaining departments. Which of the cost classifications below should be compared with departmental income to determine whether or not to close the department?

• A) Variable costs
• B) Avoidable costs
• C) Controllable costs
• D) Fixed costs

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Definitions:

Assimilation

The cognitive process by which individuals integrate new information into their existing knowledge structures or schemas.

Egocentrism

A cognitive trait where an individual fails to understand that other people can have different perspectives and viewpoints from their own.

Cognitive Development

The process by which individuals acquire and evolve in their problem-solving abilities, memory, language, and understanding of the world.

Social Development

The process by which individuals acquire the values, behaviors, and norms of their society, influencing how they interact with others.