When aksed if a company should drop a product, a segment or line of business, what is a key question that should first be asked? A. Consider only the sales revenue of the product in making the decision. B. Will any of the fixed costs go away? If yes, ignore them in the decision process. C. Consider only the operating income and loss of the product in making the decision. D. Will any of the fixed costs go away? If no, ignore them in the decision process.

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12 October, 07:14

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Tickles · Answer 1

Option B is correct (Will any of the fixed costs go away? If yes, ignore them in the decision process)