In a Decision Relating to the Possible Elimination of a Department

question 48

Multiple Choice

In a decision relating to the possible elimination of a department consideration needs to be given to all of the following except:

• A) alternative uses of the space currently occupied.
• B) adverse effects of the elimination on sales of other departments.
• C) whether all of the direct operating expenses are avoidable.
• D) unavoidable expenses.

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Definitions:

Bowed Inward

Describes a concave shape of an economic curve, such as the production possibility frontier, indicating increasing opportunity costs.

Bowed Out

A term used to describe a situation where a party withdraws from an agreement, competition, or situation.

Adaptable

The ability to adjust or modify oneself or processes to suit different conditions or environments.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs and technology.