Which of the Following Is Not a Qualitative Issue in a Special

question 77

Multiple Choice

Which of the following is not a qualitative issue in a special order pricing decision?

• A)Will accepting the special order require the hiring of extra workers or payment of overtime?
• B)Will accepting the special order result in the loss of regular customers?
• C)Will accepting the order generate an increase in operating income?
• D)If the special order generates new business, will the customer purchase again at the regular price?

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Definitions:

Decrease Ratio

A financial metric that quantifies the reduction in a particular variable or metric relative to another, often used to assess performance or efficiency decline.

Transactions

A series of financial activities or exchanges between parties that can affect the accounting records of a business.

Prepaid Insurance

Insurance premiums paid in advance by a company, recorded as an asset on the balance sheet until the coverage period comes into effect.

Depreciation Expense

The allocated portion of the cost of a company's fixed assets that is written off each year, reflecting the asset's usage and wear and tear.