When adding or dropping a product line,variable costs are the only relevant costs.

Name: When adding or dropping a product line,variable costs are the only relevant costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When adding or dropping a product line, both variable costs and fixed costs are relevant. The decision should be based on the overall profitability of the product line, which takes into account both types of costs. Fixed costs cannot be avoided in the short term and must be factored into the decision-making process.

When Adding or Dropping a Product Line,variable Costs Are the Only