Question

What decision rule should be followed when deciding if a business segment should be eliminated?
A. Segments generating a net loss should always be eliminated.
B. Segments with revenues that are more than avoidable expenses should be considered for elimination.
C. Segments with revenues that are more than unavoidable expenses should be considered for elimination.
D. Segments with revenues that are less than avoidable expenses should be considered for elimination.
E. Segments with revenues that are less than unavoidable expenses should be considered for elimination.

Answer

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