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In considering discontinuing activity decisions, it is important to consider Select one: a. avoidable costs b....

In considering discontinuing activity decisions, it is important to consider

Select one:

a. avoidable costs

b. indirect costs

c. overhead costs

d. fixed costs

Business   Accounting   
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Answer #1

Answer:- In considering discontinuing activity decisions, it is important to consider:- Avoidable costs ( Option a).

Explanation:- An avoidable cost is a cost that can be eliminated by not engaging in or no longer performing an activity. In general, a variable cost is considered to be an avoidable cost, while fixed cost is unavoidable cost, which is to be incurred whether particular product/ activity is is discontinue or not. Hence in considering a discontinuing operation avoidable costs of product/ activity is much more a important factor.

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