Discontinuance of Product Line:
The Decision on discontinuing the product line is an important decision taken on the basis of net differential effect on revenue and cost of the product discontinued on the overall the financial income of the company.
Therefore, for such analysis, the revenue lost is taken in to account and is compared with the savings in cost taken for discontinuance. However, while considering the savings in cost, only relevant cost shall be taken in to account like variable cost or avoidable fixed cost. The fixed cost incurred on the product line through allocation of general admin
Requirement1:
The Differential analysis of discontinuance of product line shall be done.
Requirement 2:
TheRecommendation on discontinuance of Product T205.
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ACCOUNTING PRINCIPLES 122 5/16 >C<
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