Asked by Kesha Boston on Jun 26, 2024

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Managers will always seek to eliminate all unprofitable product lines.

Unprofitable Product Lines

Product categories or items that do not generate a profit and may result in a financial loss for the company.

  • Understand the impact of cost allocations on product and business unit profitability.
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SubAqurius BarttJun 29, 2024
Final Answer :
False
Explanation :
Managers may not always eliminate unprofitable product lines as they may have strategic reasons to keep them, such as to maintain diversification or to compete with rivals. However, they will generally seek to improve the profitability of these product lines or restructure them to make them viable.