If a Company Has Excess Capacity and Present Markets Will

question 86

True/False

If a company has excess capacity and present markets will not be affected it would be profitable to accept an order at a special unit price even though the price is less than the unit variable cost to manufacture the item.

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Definitions:

Costs Of Doing Business

The expenses involved in the day-to-day operations of a company, including rent, utilities, payroll, and materials.

Profitable Customers

Customers who generate a net profit for a company over time, through their purchases and engagement with the business.

Customer Relationship Management

A strategy for managing a company's interactions with current and potential customers, using data analysis about customers' history with the company to improve business relationships, particularly focusing on customer retention and ultimately driving sales growth.

Analyze Information

The process of examining data or information in order to draw conclusions, make predictions, or inform decisions.