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What decision rule should be followed when deciding if a business segment should be eliminated?

Ralph Lopez

in Business

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Tara Andrews on August 27, 2018

Here is the answer of the previous question. The decision rule that should be followed when deciding whether a business segment should be removed is this: Segments with revenues which are less than avoidable expenses should be considered for removal. Unavoidable costs are those costs that will continue to be incurred if the segment is continued or interrupted. I hope this helps.


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