Which of the Following Is Not True About One-Time-Only Special

question 57

Multiple Choice

Which of the following is not true about one-time-only special orders?

• A) special orders would be accepted if they result in an increase in the contribution margin regardless of capacity and long-term implications
• B) along with other criteria, there must be excess capacity to accept an order
• C) along with other criteria, there must not be significant long-term negative implications of accepting a special order
• D) the impact on operating income of the acceptance of a special-order must be analyzed by management before making a final decision

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Definitions:

Prediction Interval

A range of values that is likely to contain the value of an unknown parameter for a future observation, with a certain degree of confidence.

Regression Analysis

A statistical technique that analyzes the connection between a dependent variable and one or more independent variables.

Lawn Quality

A measure of the health, appearance, and overall condition of grass-covered ground areas.

Confidence Interval

A type of interval estimate from statistical analysis that represents the range within which an unknown population parameter is expected to lie with a certain level of confidence.