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.

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Definitions:

Utilitarian Theory

A normative ethical theory that proposes actions are right if they benefit the majority, aiming to maximize happiness and reduce suffering.

Equally

Pertaining to being the same in quantity, size, degree, or value, or treating all parties in a situation or context without partiality or discrimination.

Utilitarians

Advocates of utilitarianism, a theory in ethics which states that the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.

God

God is a supreme being worshipped in various religions and spiritual traditions, often perceived as the creator and overseer of the universe and source of moral authority.