Discontinuing a product or product line


All of the following are considerations for discontinuing a product or product line, except

a. whether the product has a positive or negative contribution margin.

b. not having any free capacity.

c. if discontinuing the product or product line will affect sales of remaining products

d. determining if direct fixed costs could be avoided if the product or product line is discontinued.

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Accounting Basics: Discontinuing a product or product line
Reference No:- TGS045094

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