In a decision relating to the possible elimination of a department consideration needs to be given to all of the following except:
A) unavoidable expenses.
B) alternative uses of the space currently occupied.
C) whether all of the direct operating expenses are avoidable.
D) adverse effects of the elimination on sales of other departments.

Question

Quizplus · Accepted Answer

Unavoidable expenses are costs that will continue to be incurred regardless of the decision made about the department's future. Therefore, they are not relevant to the decision about eliminating a department, which should focus on avoidable costs, potential benefits from alternative uses of space, and the impact on other departments' sales.

In a Decision Relating to the Possible Elimination of a Department