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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

Related Questions on Management Accounting Test Questions

Time value of money indicates that

A. A unit of money obtained today is worth more than a unit of money obtained in future

B. A unit of money obtained today is worth less than a unit of money obtained in future

C. There is no difference in the value of money obtained today and tomorrow

D. None of the above