Discontinuing a product or segment is a huge decision that must be carefully analyzed. Which of the following would be a valid r
eason not to discontinue an operation? a. variable costs are more than revenues
b. allocated fixed costs are more than revenues
c. losses are minimal
d. variable costs are less than revenues
If the revenues of a company are more than the variable costs, it means the business is covering its variable costs and have additional revenues to meet its fixed costs. The success of a business depends on the outcomes of its revenues and output. A company output must meet demand and generate revenue.
Revenues that are higher than variable costs result in profitability. If the output is huge, the business will cover variable and fixed costs and make profits. Should the revenues fail to meet variable cost, the operation is headed for a shutdown.
The corporate cultural responsibility of a company are the standards members of the society have come to expect from the company based on the previous ways their members of staff have been seen to operate. Corporate Cultural responsibility can be seen in staff dress-code and work style.
Producer surplus: The producer surplus is a difference between the willing price declared by the producers and the price the producers receives for supplying the goods and services.
