When eliminating a product or segment of a business, the fixed costs pertaining to the product or segment will always be eliminated.

Question

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Fixed costs are costs that remain constant regardless of a business's level of production or sales revenue. These costs cannot be directly attributed to a specific product or segment and are necessary for the overall operation of the business. Therefore, eliminating a product or segment may result in a reduction of variable costs but the fixed costs will not necessarily be eliminated.

When Eliminating a Product or Segment of a Business, the Fixed