Even if a business segment reports a loss, it may still be more profitable to keep the segment rather than drop it.

Name: Even if a business segment reports a loss, it may still be more profitable to keep the segment rather than drop it.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This can occur if the segment covers its variable costs and contributes to covering the fixed costs of the business, which would otherwise have to be absorbed by other segments, potentially reducing overall profitability.

Even If a Business Segment Reports a Loss, It May