Question

Which of the following are reasons to discontinue an unprofitable business segment? Select one: A. Effect of downsizing on employee morale B. Lack of alternative source of part needed in production C. Fixed cost application to the segment that exceeds the level of the accounting loss D. All of the above E. None of the above

Answer 1

E. None of the above

Step-by-step explanation:

For continuing the unprofitable business segment there are various reasons like downsizing effect for employees morale, alternative sources lacking, application of fixed cost, etc

But the question is asked for discontinuing the business segment so in this case the E option is correct as the given options reflect the reasons for continuing the business segment i.e unprofitable in nature

Hence, the correct option is E.