Discontinuing a segment or product may not be the best choice when the segment is contributing to fixed expenses.

Name: Discontinuing a segment or product may not be the best choice when the segment is contributing to fixed expenses.
Brand: Quizplus
Rating: 4.9 (27 reviews)

Question

Quizplus · Accepted Answer

Discontinuing a segment or product that is contributing to fixed expenses may actually increase overall losses. It is important to consider the impact on the company's cost structure and profitability before making the decision to discontinue a segment or product.

Discontinuing a Segment or Product May Not Be the Best