A Company Is Within Plant Capacity

question 90

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 the 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:

Physical Environment

this refers to the tangible, surrounding conditions or settings in which individuals live or operate, and which can influence their well-being and behavior.

Virtual Teams

Groups of individuals who work together from different geographic locations, connected by technology.

Task-Focused Group

A group organized and dedicated to completing a specified task or set of tasks, prioritizing performance and outcomes.

Information Technology

involves the use of computers, networking, and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data.