Asked by
vishal yadav
on Oct 10, 2024
Verified
Fixed costs are irrelevant in decisions about whether a product should be dropped.
Fixed Costs
Costs that remain constant in total regardless of changes in levels of activity or volume of output within a certain range.
Product Dropping
The process of discontinuing a product from a company's offerings, often due to poor sales, shifting market demands or strategic realignments.
- Identify the role of fixed and variable costs in product discontinuation decisions.
Verified Answer
PL
Learning Objectives
- Identify the role of fixed and variable costs in product discontinuation decisions.
Related questions
A Product Whose Revenues Do Not Cover Its Variable Costs ...
If by Dropping a Product a Firm Can Avoid More ...
The Split-Off Point Is the Stage in Production of Joint ...
Only the Variable Costs Identified with a Product Are Relevant ...
Bordeaux Company Has Three Product Lines One of Which Reflects ...