In a decision to drop a product, the product should be charged for rent in proportion to the space it occupies even if the space has no alternative use and the rental payment is unavoidable.

Question

Quizplus · Accepted Answer

Rent for space that has no alternative use and involves an unavoidable payment should not be considered in the decision to drop a product, as it represents a sunk cost and will not be saved by discontinuing the product.

In a Decision to Drop a Product, the Product Should