Which of the following statements describes a scenario when management should consider dropping a business division?
A) The division has been consistently reporting an operating loss.
B) The division's avoidable fixed costs are less than its contribution margin.
C) The division's avoidable fixed costs are greater than its contribution margin.
D) The division's unavoidable fixed costs are greater than its operating loss.
C) The division's avoidable fixed costs are greater than its contribution margin.
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Which of the following evaluates a project's position?
A. Value Chain Analysis B. SWOT Analysis C. The Five Forces Model D. Three Generic Strategies
Explain why reduced security is an outsourcing risk
TomSauce, a brand of tomato sauce, advertises that the tomatoes it uses are processed within 24 hours of being picked to ensure product freshness. In this scenario, the fresh tomatoes are examples of _____
a. raw materials b. component parts c. MRO items d. supplies
Discounting the future refers to
A. underestimating the short-term effects of a decision. B. failing to consider the effects of new entrants into the industry. C. failing to consider inflationary costs. D. focusing on gains in the long run. E. weighing short-term benefits more heavily than long-term benefits.