A decision to make or eliminate an unprofitable product is a
A) special-order decision.
B) keep-or-drop a product-line decision.
C) make-or-buy decision.
D) both b and c.

Question

Quizplus · Accepted Answer

A keep-or-drop a product-line decision involves deciding whether to continue producing and selling a specific product. Therefore, the decision to make or eliminate an unprofitable product falls under this category. Special-order decisions are usually one-time decisions that are not part of the company's regular operations, and make-or-buy decisions involve deciding whether to produce a component or buy it from an external supplier. Therefore, options A and C are not relevant to the decision to eliminate an unprofitable product.

A Decision to Make or Eliminate an Unprofitable Product Is