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:

Cash Flow

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Base Pay Method

A compensation approach that determines the initial salary offered to an employee, not including extra forms of compensation like bonuses or overtime.

Market Pricing

The process of determining the salary levels and ranges for positions within a company by comparing them with similar jobs in the external labor market.

Job Evaluation

A systematic process for determining the relative value or worth of a job in an organization, which helps to establish fair compensation.