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Which of the following statements regarding special orders is (are) true? (A) In the short-run, the primary decision for special orders is determining whether the

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Which of the following statements regarding special orders is (are) true? (A) In the short-run, the primary decision for special orders is determining whether the differential revenue is greater than the differential costs associated with the order (i.e., the price covers the variable costs). (B) The differential analysis approach to pricing for special orders could lead to underpricing in the long-run because fixed costs are not included in the analysis (i.e., the price does not cover the sum of variable costs and fixed costs). Only Statement A Only Statement B Neither Statement A nor Statement B is true Both Statement A and Statement B are true

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