Sunday, September 14, 2008

Relevant Costs Dropping Product Line

What Costs are Relevant when Considering Dropping a Product Line?

Only costs that can be avoided as a result of the decision to drop the product line are relevant in calculating cost savings. Costs that will remain the same whether the product line is retained or discontinued are irrelevant when making this decision.

No comments:

Popular Accounting Problems

The information on this site is for informational purposes only and should not be used as a substitute for the professional advice of an accountant, tax advisor, attorney, or other professional.