Multiple Choice
How is differential analysis used to determine when to add or drop parts of an operation?
A) If the differential costs required to provide the product for sale exceeds the differential revenue from the sale of a product,then the product generates profits and the firm should continue its production.
B) If the differential costs required to provide the product for sale exceeds the differential revenue from the sale of a product,then the product generates losses and the firm should continue its production.
C) If the differential revenue from the sale of a product exceeds the differential costs required to provide the product for sale,then the product generates profits and the firm should continue its production.
D) If the differential revenue from the sale of a product exceeds the differential costs required to provide the product for sale,then the product generates profits and the firm should discontinue its production.
Correct Answer:
Verified
Correct Answer:
Verified
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