In deciding whether to add or drop newproducts, services, or departments, managers should emphasize the option that makes the greatest contributionpossible to pay unavoidable costs.
举一反三
- Unavoidable costs are neverrelevant in deciding whether to eliminate a product or department.
- A firm that shuts down temporarily has to pay A: its variable costs but not its fixed costs. B: its fixed costs but not its variable costs. C: both its variable costs and its fixed costs. D: neither its variable costs nor its fixed costs.
- Opportunity costs should be considered in the project even if they are not out-of-pocket costs. ( )
- One should ______ the risks in deciding whether or not to pursue a business opportunity.
- Variableexpenses are divided into avoidable and unavoidable costs.