Question
Which of the following statements regarding accepting a special order is False? A) if a company is already operating at full capacity, it is likely
Which of the following statements regarding accepting a special order is False?
A) if a company is already operating at full capacity, it is likely that additional fixed costs would be incurred if the special order is accepted, which could cause it to be rejected.
B) if the special order price is less than the total cost of producing the product, the special order should not be accepted.
C) if the special order price is greater than the variable costs and fixed costs do not change, the order should be accepted.
D) consideration should be given to the effect that accepting the special order would have on sales of products in other markets.
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