When There Is Excess Capacity,it Makes Sense to Accept a One-Time-Only

question 89

Multiple Choice

When there is excess capacity,it makes sense to accept a one-time-only special order for less than the current selling price when:

• A)incremental revenues exceed incremental costs.
• B)additional fixed costs must be incurred to accommodate the order.
• C)the company placing the order is in the same market segment as your current customers.
• D)None of the above is correct.

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Definitions:

Logistics

The detailed coordination and implementation of complex operations, often referring to the movement and storage of goods from point of origin to point of consumption.

Electronic Data Interchange

A system that allows the transfer of information between organizations in a structured format, facilitating automatic processing and reducing manual errors.

ERP Systems

Integrated software platforms used by organizations to manage and automate many back office functions related to technology, services, and human resources.

Radio Frequency Identification System

A technology that uses radio waves to automatically identify and track tags attached to objects, which contain electronically stored information.