Which of the Following Is True If a Company Can

question 183

Multiple Choice

Which of the following is true if a company can accept a special order without affecting its regular sales and is within plant capacity?

• A) Net income will not be affected.
• B) Net income will increase if the special sales price per unit exceeds the unit variable costs.
• C) Net income will decrease.
• D) Additional fixed costs will probably be incurred.

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Definitions:

Past Income

The amount of money an individual or entity earned in preceding periods, often used for comparative analysis or financial assessment.

Inheritance

Inheritance involves the passing of assets, properties, and debts from the deceased to their heirs or beneficiaries.

Command Economy

An economic system where the government controls all major aspects of production, investment, and distribution.

Laissez-Faire

An economic theory from the 18th century that is strongly against the government interfering in the marketplace.