A product whose revenues do not cover its variable costs and its traceable fixed costs should usually be dropped.

Name: A product whose revenues do not cover its variable costs and its traceable fixed costs should usually be dropped.
Brand: Quizplus
Rating: 4.9 (34 reviews)

Question

Quizplus · Accepted Answer

If a product's revenues do not cover its variable costs and traceable fixed costs, it means that it is operating at a loss and is not profitable. Therefore, it is usually best to drop the product in order to minimize losses and focus on more profitable products.

A Product Whose Revenues Do Not Cover Its Variable Costs