A Company Is Within Plant Capacity

question 74

Multiple Choice

A company is within plant capacity.It is contemplating whether a special order should be accepted.The order will not impact regular sales.If the company accepts a special order, what will occur?

• A)Incremental costs will not be affected.
• B)Net income will increase if the special sales price per unit exceeds the unit variable costs.
• C)There are no incremental revenues.
• D)Both fixed and variable costs will increase.

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Definitions:

Retention

Retention refers to the ability of a company or organization to keep its employees or customers over a period of time, minimizing turnover or churn.

Misunderstandings

Occurrences where there is a failure to accurately understand or interpret someone's words, actions, or intentions, often leading to conflict or confusion.

Personalizing Relationships

Tailoring interactions and communication to build closer, individualized connections with customers or clients.

Customers

Individuals or organizations that purchase goods or services from a business.