Which of the following statements is true?
A)Common costs should be considered when deciding to drop a product line.
B)If a segment of a company has been losing money for several years, that segment should be dropped.
C)If an unprofitable segment is dropped, the company's net income will increase.
D)If an unprofitable segment is dropped, fixed costs will decrease.

Question

Quizplus · Accepted Answer

Common costs should be considered when deciding to drop a product line because they will affect the profitability of the remaining product lines.

Which of the Following Statements Is True