Which of the Following Must Be True for a Company

question 28

Multiple Choice

Which of the following must be true for a company to accept a special order?

• A)Variable costs must be less than the contribution margin.
• B)Incremental revenues must be greater than incremental costs.
• C)Opportunity costs must be greater than total revenue.
• D)Total fixed costs must stay constant.

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Definitions:

Gestalt Principle

A theory that proposes objects are viewed in their entirety before being broken down into individual components.

Dots

Small, round marks used in a variety of contexts, including visual presentations, data visualization, and written material for punctuation purposes.

Closure

The psychological phenomenon where an individual seeks a sense of completeness or resolution to an emotional or traumatic event.

Similarity

The cognitive process of recognizing objects or ideas that are alike in appearance or concept.