All of the following are considerations for discontinuing a product or product line, except
A)whether the product has a positive or negative contribution margin.
B)not having any free capacity.
C)if discontinuing the product or product line will affect sales of remaining products.
D)determining if direct fixed costs could be avoided if the product or product line is discontinued.

Question

Quizplus · Accepted Answer

Not having any free capacity is not necessarily a consideration for discontinuing a product or product line. The other three options - contribution margin, impact on sales of remaining products, and direct fixed costs - are all common factors that are evaluated when making the decision to discontinue a product or product line.

All of the Following Are Considerations for Discontinuing a Product