An Architecture Firm Currently Offers Services That Appeal to Both

Multiple Choice

An architecture firm currently offers services that appeal to both individuals and commercial clients. If the firm decides to discontinue services to individuals because of ongoing losses, which of the following costs could the company likely avoid?

A) General corporate overhead that was allocated to individual clients.
B) Building depreciation.
C) Insurance.
D) Variable operating costs.
E) Monthly installment payments on general-purpose, computer drafting equipment.