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What Happens If An Unprofitable Segment Is Eliminated?

Q 1217 what happens if an unprofitable segment is eliminated variable expenses. Q 1217 what happens if an unprofitable segment is. 1 what happens if an unprofitable segment is eliminated??. 1. 1 economics flashcards | quizlet; 2 what will most likely occur if a company eliminates an unprofitable segment when a portion of fixed costs are unavoidable?; 3 what is the term for a decision to make or eliminate an unprofitable product?; 4 which of the following are relevant in deciding. What happens if an unprofitable segment is eliminated?

B variable expenses of the eliminated segment will be eliminated. C fixed expenses allocated to the eliminated segment will be eliminated. An unprofitable products analysis determines which products to cancel. Doing so makes product lines less complex and requires fewer components. No other inventory carrying costs should be included, since they will not disappear if the product is eliminated (that is, the other carrying costs are overhead costs). Decisions to eliminate unprofitable business segments. · a firm must consider whether to eliminate a particular division or segment if it is not profitable. Managers must consider which costs and benefits would change as a result of the decision. What happens if an unprofitable segment is eliminated? (a) variable expenses of the eliminated segment will be eliminated. (b) fixed expenses allocated to the eliminated segment will be eliminated. A firm has just saved $36,000 in fixed costs by eliminating one of its unprofitable product lines. By dropping the product line, the firm has. What will most likely occur if a company eliminates an unprofitable? What will most likely occur if a company eliminates an unprofitable segment when a portion of fixed costs are unavoidable? All expenses of the eliminated segment will be eliminated. Net income will decrease. Accounting questions and answers. If an unprofitable segment is eliminated a) it is impossible for net income to decrease. B) fixed expenses allocated to the eliminated segment will be eliminated.

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What happens if an unprofitable segment is eliminated? A it is impossible for net income to decrease. B variable expenses of the eliminated segment will be eliminated. C fixed expenses allocated to the eliminated segment will be eliminated. An unprofitable products analysis determines which products to cancel. Doing so makes product lines less complex and requires fewer components. No other inventory carrying costs should be included, since they will not disappear if the product is eliminated (that is, the other carrying costs are overhead costs). Decisions to eliminate unprofitable business segments. · a firm must consider whether to eliminate a particular division or segment if it is not profitable. Managers must consider which costs and benefits would change as a result of the decision.