If There Is Excess Capacity, the Minimum Acceptable Price for a Special

question 49

Multiple Choice

If there is excess capacity, the minimum acceptable price for a special order must cover

• A)only variable costs associated with the special order.
• B)variable and fixed manufacturing costs associated with the special order.
• C)variable and incremental fixed costs associated with the special order.
• D)variable costs and incremental fixed costs associated with the special order, plus the contribution margin usually earned on regular units.

Identify when and how an agent has authority to act on behalf of a principal.

Distinguish between disclosed, partially disclosed, and undisclosed principals and their liabilities.

Recognize the consequences of unauthorized actions by agents.

Comprehend the principles surrounding the termination of agency relationships.