In a decision relating to the possible elimination of a department consideration would need to be given to which of the following factors?
I. Alternative uses of the space currently occupied by the department
II. Adverse effect of the elimination of sales of other departments
III. Whether all of the direct operating expenses are avoidable
A) None of the factors.
B) I and III only.
C) I and II only.
D) I, II and III.

Question

Quizplus · Accepted Answer

All three factors are relevant when considering the elimination of a department. I. Assessing alternative uses of the space ensures resources are optimally utilized. II. Understanding the potential adverse effects on other departments' sales helps evaluate the broader impact on the business. III. Determining if direct operating expenses are avoidable is crucial for accurate cost-benefit analysis.

In a Decision Relating to the Possible Elimination of a Department