Asked by Agnes Arzumanyan on May 07, 2024
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In deciding on the future status of an unprofitable segment management does not usually consider the effect of elimination on related product lines.
Unprofitable Segment
A division or part of a business that consistently operates at a loss, detracting from the overall profitability of the company.
Elimination
The process of removing a component or aspect, often used in the context of accounting to adjust consolidated financial statements.
Related Product Lines
Products that are linked or associated in terms of their usage, customer base, or production requirements, often marketed together.
- Grasp the principles of making decisions on unprofitable segments and the broader impacts of such decisions.
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Learning Objectives
- Grasp the principles of making decisions on unprofitable segments and the broader impacts of such decisions.
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