Which of the following is irrelevant to the decision to eliminate an unprofitable segment?
A)The segment margin
B)Direct fixed costs
C)Common fixed costs
D)Segment revenue

Question

Quizplus · Accepted Answer

Common fixed costs are irrelevant to the decision to eliminate an unprofitable segment because they would remain unchanged whether the segment is kept or eliminated. These costs are not directly attributable to the segment in question.

Which of the Following Is Irrelevant to the Decision to Eliminate