When Deciding to Accept or Reject a Special Order, Which

question 94

Multiple Choice

When deciding to accept or reject a special order, which of the following costs is most likely to be irrelevant?

• A)The wages of direct labor to make the order
• B)Depreciation on the machinery used to make the order
• C)The raw material used to make the order
• D)The electricity used to run the machine to make the order

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Definitions:

Pricing Strategy

Pricing Strategy encompasses the methods and logic a company uses to set prices for its products or services, influencing demand, profitability, and market positioning.

Profit Objectives

Financial goals set by a company seeking to achieve a specific amount of profit over a certain period.

Target Return

A pricing strategy that sets the price point based on a predetermined return on investment or desired profit margin.

Profit Goal

A specific, quantifiable financial objective set by a business, aiming to achieve a particular level of profit within a defined period.