Management Accounting Test Questions

Q.  Which of the following principles should be followed while making a decision to drop a product/line?

a. Product yielding lowest contribution should be given top priority in production programme
b. A product line should be dropped, if it yields positive contribution
c. If any factor is key factor, the product/line should be dropped, which gives maximum contribution per unit of key factor
d. None of the above

ANSWER: See Answer
No explanation is available for this question!