Which of the following are relevant to the decision of whether to drop a business segment or not?
A) Revenues of the segment
B) Variable costs of goods sold of the segment
C) Variable operating expenses of the segment
D) Fixed overhead applied to the segment
E) A, B, and C only

Question

Quizplus · Accepted Answer

When deciding whether to drop a business segment, it's important to consider revenues, variable costs of goods sold, and variable operating expenses. These factors directly impact the profitability and financial performance of the segment. Fixed overhead applied to the segment, however, is not relevant because it typically does not change with the decision to drop the segment and may continue to be incurred by the company.

Which of the Following Are Relevant to the Decision of Whether