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

Question

Quizplus · Accepted Answer

Unavoidable expenses are costs that will 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 focuses on avoidable costs and other strategic considerations.

In a Decision Relating to the Possible Elimination of a Department