Which of the Following Reasons Would Cause a Company to Reject

question 73

Multiple Choice

Which of the following reasons would cause a company to reject an offer to accept business at a special price?

• A) The additional sales will not conflict with regular sales.
• B) The additional sales will increase differential income.
• C) The additional sales will not increase fixed expenses.
• D) The additional sales will increase fixed expenses.

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Definitions:

Revenue

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Capacity Flexibility

The ability of a production system to adjust its output in response to fluctuations in demand.

Part-Time Workforce

Employees who work less than the standard working hours, often offering businesses flexible labor options and workers a more adaptable schedule.

Peak Periods

Times of significantly higher demand or activity in a business cycle, often leading to increased stress on resources and operations.