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valentina_108 [34]
3 years ago
7

What decision rule should be followed when deciding if a business segment should be eliminated?

Business
2 answers:
bulgar [2K]3 years ago
7 0

Answer:

The segments whose revenue is less than the avoidable expense of the organization must be eliminated when the management considers the elimination of a business segment.

Explanation:

The segments contributing less than the avoidable expense of the organization are deemed to contribute negatively to the organization. Hence the organization must consider eliminating such segments in order to ensure the sustainability and growth of all the segments and organization collectively.

Further explanation:

Avoidable expenses of an organization are those expenses which generally occur only with the continuity of that particular activity. Thus, the discontinued practice of such an activity will result to end of such expenses. Such an expense includes – cost on direct labour, directly attached marketing costs, etc.

Hence the segments which yield less than the avoidable cost of the organization must be considered for the elimination as they give inadequate returns and are unprofitable for the organization.

Learn More:

The concept of avoidable cost in respect to decision making,  brainly.com/question/6480477 , Answered by W0lf93

 A decision in which a manager needs to determine whether a product line (or segment) should continue or be eliminated is what kind of decision , brainly.com/question/13120599 , Answered by Almatheia

Keywords:

Elimination of a segment, less revenue making segments, avoidable cost in elimination of segment, avoidable expense.

dusya [7]3 years ago
5 0
Here is the answer of the given question above. The decision rule that should be followed when deciding if a business segment should be eliminated is this: Segments with revenues which are less than avoidable expenses should be considered for elimination. <span>Unavoidable expense are those expense which will continue to be incurred whether segment is continued or discontinued. Hope this helps.</span>
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Although a business has had record sales it is having a hard time paying the bills each month. As a manager you are uncertain wh
Svetradugi [14.3K]

Answer:

Income statements and or Cash flow statements.

Explanation:

Income statement and Cash flow statements are required.

Income Statement will give us insight about our costs as we maybe recording sales but if the costs and expenses are too high we are unlikely to be making enough gross profits to be able to pay bills.

Cash flow statements are required as sales may be credit and thus reducing working capital for the company, although they may be making profits but if the debts are uncollected they are unlikely to have cash available to be able to make payments.

Hope that helps.

3 0
3 years ago
Evaluating od interventions always involves measuring their impact on employee satisfaction, productivity, and the bottom line.
Usimov [2.4K]

False. Evaluating interventions always involves measuring their impact on employee satisfaction, productivity, and the bottom line.

<h3>What is evaluating interventions?</h3>

A number of creative methods for conflict-resolution evaluation have been developed, despite the fact that conflict-resolution interventions are often evaluated on an as-needed basis.

1. Participants' Evaluation

Participatory evaluation is an evaluation strategy that is "bottom-up" or "people-centered."

2. Utilization-Focused Evaluation

In a utilization-focused evaluation, a group of "intended users" is identified who choose the "intended uses" for the evaluation data.

3. Impact Evaluation

The goal of an impact evaluation is to ascertain how effective an intervention is. Theoretically, this is straightforward, but the community involved in conflict resolution has not yet sufficiently defined the word "effect."

4. Action Evaluation

By encouraging stakeholders to define and track success, Action Evaluation seeks to assure the effectiveness of initiatives.

5. Macro-Evaluation

Macro-Evaluation, generally speaking, is to ascertain how grassroots micro-level initiatives 'ripple up' to the regional or national level.

To learn more about Evaluation of interventions visit:

brainly.com/question/28065744

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6 0
1 year ago
Watters Umbrella Corp. issued 15-year binds two years ago at a coupon rate of 6.2 percent. The bonds make semiannual payments. I
Sholpan [36]

Answer:

YTM = 6.42%

Explanation:

current market value = $1,000 x 98% = $980

n = (15 - 2) x 2 = 26

coupon = $1,000 x 6.2% x 1/2 = $31

face value = $1,000

YTM = [coupon + [(face value - market value)/n]} / [(face value + market value)/2]

YTM = [31 + [(1,000 - 980)/26]} / [(1,000 + 980)/2]

YTM = (31 + 0.77) / 990 = 31.77 / 990 = 0.03209 x 2 (annual yield) = 0.641818 = 6.42%

5 0
3 years ago
True/False/Explain – If all production processes were subject to constant returns to scales for all output levels, monopolistic
Elena L [17]
The answer is true okay!
4 0
3 years ago
The open innovation technique that involves generating insights based on ideas from massive numbers of people is called Blank___
cricket20 [7]

According to the research, crowdsourcing is the open technique that involves generating insights based on ideas from massive numbers of people.

<h3>What is crowdsourcing?</h3>

It refers to a massive collaboration provided by individuals who are not part of an entity or institution.

It is an open modality of joint work of an indefinite number of people, who contribute their ideas for the development of a certain project.

Therefore, we can conclude that according to the research, crowdsourcing is the open technique that involves generating insights based on ideas from massive numbers of people.

Learn more about crowdsourcing here: brainly.com/question/14490967

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5 0
2 years ago
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