Fill in the Blank QuestionFill in the blank question.A(n) cost is the amount that would remain if a segment is eliminated.

The correct answer to the fill-in-the-blank question is "avoidable" cost.

Explanation

In managerial accounting, costs are often classified as avoidable or unavoidable. An avoidable cost refers to expenses that can be eliminated if a particular segment of business (such as a department or product line) is discontinued. For example, if a specific product is not performing well and its production is halted, the costs that are associated with that product, like raw materials, direct labor, and variable overhead, would no longer be incurred. This type of analysis is crucial for decision-making, as it helps managers understand which costs can be cut to improve overall profitability. Understanding avoidable costs is essential for evaluating the financial impact of discontinuing products and managing resources efficiently.