Managers Should Accept a Special Order If Its Price Is

question 34

Multiple Choice

Managers should accept a special order if its price is greater than the sum of:

• A) All variable costs and all fixed costs
• B) All variable costs and all opportunity costs
• C) All fixed costs and all opportunity costs
• D) Variable costs, relevant fixed costs and opportunity costs

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Definitions:

Acknowledged

means recognized or accepted as being true or existing, often officially or formally.

Lodger

A person who has the use of property without actual or exclusive possession of it.

Direct Owner

Refers to the person or entity that has legal possession and full control over a property or asset.

License

A grant of permission to do a particular thing, to exercise a certain privilege, to carry on a particular business, or to pursue a certain occupation; an agreement that gives no property right or interest in land but merely allows the licensee to do certain acts that would otherwise be a trespass; a privilege granted by a state or city.