Question
When deciding whether to discontinue a segment of a business, managers should focus on: Multiple Choice The cost of equipment from the segment that could
When deciding whether to discontinue a segment of a business, managers should focus on:
Multiple Choice
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The cost of equipment from the segment that could go idle if the segment were discontinued.
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The amount of operating income per unit produced by the segment.
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The amount of contribution margin per direct labor hour in the segment.
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How corporate-level administrative costs would be redistributed if the segment were eliminated.
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The total contribution margin generated by the segment relative to any traceable (avoidable) fixed costs associated with the segment.
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