| Advertisement |
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.
