Do you think bob should agree with this approach

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Cost Accounting Assignment - Profitability Analysis Discussion

Bob, A cost accountant prepares a product profitability report for his boss, Tom, the production manager. Much to Bob's surprise, almost one third of the company's products are not profitable. He say, "Tom, it looks like we will have to drop one third of our products to improve overall company profits. It's a good thing we decided to look at profitability by product." Do you think Bob should agree with this approach? Why? What questions would you ask in order to make a better decision on dropping the products?

Reference no: EM133207298

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