Only the variable costs identified with a product are relevant in a decision concerning whether to eliminate the product or not.

Name: Only the variable costs identified with a product are relevant in a decision concerning whether to eliminate the product or not.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Fixed costs can also be relevant if they are avoidable or directly attributable to the product in question. Decisions on eliminating a product should consider all costs that would change as a result of the decision.

Only the Variable Costs Identified with a Product Are Relevant