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With respect to discontinuing a segment or product, a product, department, branch, territory, or other segment of a business may A) be generating losses; as
With respect to discontinuing a segment or product, a product, department, branch, territory, or other segment of a business may A) be generating losses; as a result, management may consider discontinuing (eliminating) the product or segment B) discontinuing the product or segment usually eliminates all of the product's or segment's variable costs such as direct materials, direct labor, variable factory overhead, and sales commissions fixed costs such as depreciation, insurance, and property taxes may not be eliminated; thus, it is possible for total company income to decrease rather than increase if the unprofitable product or segment is discontinued D) all of the above E) none of the above
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