题目内容
The variable costs of a product are relevant in a decision concerning whether to eliminate the product.
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Fixed costs are irrelevant in decisions about whether a product should be dropped.
A product whose revenues do not cover its variable costs and its traceable fixed costs should usually be dropped.
In a decision to drop a product, the product should be charged for rent in proportion to the space it occupies even if the space has no alternative use and the rental payment is unavoidable.
A disadvantage of vertical integration is that by pooling demand for parts from a number of companies, a supplier may be able to enjoy economies of scale that result in higher quality and lower cost than if every company makes its own parts.
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