Answer the following question(s)using the information below.John's 8-year-old Chevrolet Trail Blazer requires repairs estimated at $6,000 to make it roadworthy again.His wife, Sherry, suggested that he should buy a 5-year-old used Jeep Grand Cherokee instead for $6,000 cash.Sherry estimated the following costs for the two cars:

-Companies periodically confront decisions about discontinuing or adding branches or business segments.In order to determine the best course of action, a ________ should be performed in order to make the optimal decision.
A)relevant feasibility study
B)relevant risk assessment
C)relevant-revenue and relevant-cost analysis
D)relevant-risks and relevant-loss analysis
E)relevant capital and relevant cash flow analysis

Question

Answer the following question(s)using the information below.John's 8-year-old Chevrolet Trail Blazer requires repairs estimated at $6,000 to make it roadworthy again.His wife, Sherry, suggested that he should buy a 5-year-old used Jeep Grand Cherokee instead for $6,000 cash.Sherry estimated the following costs for the two cars:
 
-Companies periodically confront decisions about discontinuing or adding branches or business segments.In order to determine the best course of action, a ________ should be performed in order to make the optimal decision.
A)relevant feasibility study 
B)relevant risk assessment 
C)relevant-revenue and relevant-cost analysis 
D)relevant-risks and relevant-loss analysis 
E)relevant capital and relevant cash flow analysis

Quizplus · Accepted Answer

A relevant-revenue and relevant-cost analysis helps in evaluating the financial impact of discontinuing or adding branches or segments by focusing on the revenues and costs that will change as a result of the decision.

Answer the Following Question(s)using the Information Below