Unavoidable costs are neverrelevant in deciding whether to eliminate a product or department.
举一反三
- Unavoidablecosts are never relevant in deciding whether to eliminate a product or department.
- Which of the following are relevant when deciding whether or not to discontinue a product? （ ）在决定是否停产产品时，以下哪项是相关的？（ ） A: Unavoidable fixed costs related to the product 与产品有关的不可避免的固定成本 B: Avoidable fixed costs related to the product 与产品有关的可避免的固定成本 C: The product’s contribution margin 产品的边际利润 D: The effect of discontinuation on the sales of the company’s other products. 停产对公司其他产品销售的影响。
- 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.
- Unavoidable costs do not include commoncosts.
- Front Office department and Housekeeping department are combined as Department.