Which of the following is false when conducting an incremental analysis of whether to drop an...

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Which of the following is false when conducting an incremental analysis of whether to drop an unprofitable segment? Revenue from the discontinued segment is not absorbed by the remaining segments. Managers not only need to look at changes in net income, they also need to consider any qualitative factors influencing the decision. O Managers must consider the amount of fixed costs that would remain after discontinuing a segment as these costs will be absorbed by other segments O If avoidable fixed costs are less than the lost contribution margin, they should eliminate the segment. Which of the following is false when conducting an incremental analysis of whether to drop an unprofitable segment? Revenue from the discontinued segment is not absorbed by the remaining segments. Managers not only need to look at changes in net income, they also need to consider any qualitative factors influencing the decision. O Managers must consider the amount of fixed costs that would remain after discontinuing a segment as these costs will be absorbed by other segments O If avoidable fixed costs are less than the lost contribution margin, they should eliminate the segment.

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Answer Option D is False If avoidable fixed costs are less than th... View the full answer