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When deciding whether or not to discontinue a product line, which of the following is true? a. As long as common company costs are allocated
When deciding whether or not to discontinue a product line, which of the following is true?
a. | As long as common company costs are allocated based on sales revenue they are relevant to the decision of dropping a product line. | |
b. | Common company costs will be incurred whether the product line is dropped or not and are therefore relevant to making the decision. | |
c. | Only the fixed portion of common company costs is relevant to the decision of dropping a product line. | |
d. | Allocated common company costs are unavoidable costs and therefore irrelevant to the decision. |
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