Discontinuing a product or segment is a huge decision that must be carefully analyzed. Which of the following would be a valid reason not to discontinue an operation?
A) when the losses are minimal
B) when the variable costs are less than revenues
C) when the variable costs are more than revenues
D) when fixed costs are more than revenues
B
You might also like to view...
Adapting the notion that learning is what happens when the old and the new clash and create tension, Weick and Westley (1999) identify three areas or metaphors where organizational learning can happen. Which of the following is NOT one of those?
a. Humor b. Improvisation c. Games d. Small wins
What are some of the world-wide trends that have caused the workforce to become increasingly diverse?
What will be an ideal response?
A-Z Auto Parts Company uses the indirect method to prepare the statement of cash flows
Refer to the following section of the comparative balance sheet: A-Z Company Comparative Balance Sheet December 31, 2017 and 2016 2017 2016 Increase/(Decrease) Accounts Payable $4,000 $6,000 $(2,000 ) Accrued Liabilities 2,000 1,000 1,000 Long-term Notes Payable 84,000 90,000 (6,000 ) Total Liabilities $90,000 $97,000 $(7,000 ) How will the change in Accrued Liabilities be shown on the statement of cash flows? A) as an addition to Net Income B) as a deduction from Net Income C) as a deduction from operating cash flows D) as an addition to operating cash flows
When a sale is made to a customer who pays with a check, the company records:
A. A debit to Accounts Payable. B. A debit to Cash. C. A debit to Accounts Receivable. D. No entry until the check clears the bank.