Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 11 - Decision Making and Relevant Information - Assignment Material - Questions - Page 458: 11-11

Answer

I don't necessarily agree. While negative operating income can be a cause for concern, shutting down a branch or segment should be based on a comprehensive analysis. Factors such as long-term potential, strategic importance, and the possibility of turning the segment around should be considered before making such a decision.

Work Step by Step

I don't necessarily agree. While negative operating income can be a cause for concern, shutting down a branch or segment should be based on a comprehensive analysis. Factors such as long-term potential, strategic importance, and the possibility of turning the segment around should be considered before making such a decision.
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