Question
Can you tell me if following statements are True or false? Thank you! In making a decision to eliminate a segment of a business, managers
Can you tell me if following statements are True or false?
Thank you!
In making a decision to eliminate a segment of a business, managers should compare differential revenues for the segment to its avoidable costs.
Eliminating one segment of a business generally has no effect on the other segments.
Eliminating one segment of a business has no effect on the customers of the other segments.
The opportunity cost, alternative use for facilities, should be considered in deciding whether to retain a segment of a business.
A decision to eliminate a segment of a business is likely to have long-term consequences because re-establishing the segment might be difficult.
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