Please select that whether below statements are correct or incorrect?
1. A difficulty that arises with respect to revenue when analyzing whether to drop a product or department is whether sales by one organizational unit can affect sales in another organizational unit.
2. A difficulty that arises with respect to cost analysis is that many product costs, such as machine and factory depreciation, are the result of sunk costs that often remain in whole or in part after the product is discontinued.

The correct statement is option 2.

A difficulty that arises with respect to cost analysis is that many product costs, such as machine and factory depreciation, are the result of sunk costs that often remain in whole or in part after the product is discontinued.

Explanation:

Cost analysis of a product is a system that is applied to check  the component costs of a product with respect to the value created and appreciated by a customer.

The analysis aims to improve the value of the product with the most cost effective option available which will create a favorable pricing for end users  without reducing value.

Sunk costs accrue during the pre production and production phase that can no longer be recovered. It is not like investment that can be accounted for.

Therefore, difficulty that arises with respect to cost analysis is that many product costs, such as machine and factory depreciation, are the result of sunk costs that often remain in whole or in part after the product is discontinued.

i believe it’s b because the rest don’t make sense

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

your welcome leave a rate and a < 3