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

Question

Quizplus · Accepted Answer

The decision to make or eliminate an unprofitable product is a keep-or-drop a product-line decision. It involves analyzing the profitability of each product within a product line and deciding whether to continue producing it or discontinue it. This is different from a make-or-buy decision, which involves deciding whether to produce a component or buy it from an outside supplier, and from a special-order decision, which involves deciding whether to accept a one-time order that is different from the company's usual production.

A Decision to Make or Eliminate an Unprofitable Product Is