Can you tell me if following statements are True or false? Thank you! In making

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 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.

Explanation / Answer

1. TRUE - In making a decision to eliminate a segment of a business, managers should compare differential revenues for the segment to its avoidable costs.

2. TRUE - Eliminating one segment of a business generally has no effect on the other segments.

3. FALSE - Eliminating one segment of a business has no effect on the customers of the other segments.

4. FALSE - The opportunity cost, alternative use for facilities, should be considered in deciding whether to retain a segment of a business.

5. TRUE - A decision to eliminate a segment of a business is likely to have long-term consequences because re-establishing the segment might be difficult.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.