Subscribe:

Ads 468x60px

What is absolute profitability?


Do you agree or disagree with the following statement? Support your conclusion. “The process of deciding which products to drop when a constraint forces trade-offs is referred to as absolute profitability.” 

The statement, “The process of deciding which products to drop when a constraint forces trade-offs is referred to as absolute profitability,” is incorrect.

Absolute profitability measures the impact on the organization’s overall profits of adding or dropping a particular segment, such as a product or customer, without making other changes. Relative profitability is concerned with ranking products, customers, and other business segments to determine which should be emphasized.
Related Posts Plugin for WordPress, Blogger...