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.

Understand the principles of credit policies and terms, including discounts and their impact on sales and profitability.

Analyze the effect of different credit terms on accounts receivable and overdue accounts.

Comprehend the concept of float and how transactions affect checking account balances.

Calculate the financial impact of implementing cash management tools such as lockbox systems.

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Definitions:

Vulnerable

Indicates a state of being open to harm, damage, or attack due to various factors such as physical, emotional, economic, or environmental conditions.

Extinction

The permanent loss of a species from the Earth.

Reconciliation Project

Initiatives or programs designed to mend relationships and resolve disputes among groups or nations, focusing on healing and understanding past grievances.

Precautionary Strategy

An approach that involves taking preventive measures to mitigate potential risks or harm, especially when scientific evidence is incomplete.