When There Is an Excess Capacity, It Makes Sense to Accept

question 169

Multiple Choice

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

• A) incremental revenues exceed incremental costs
• B) additional fixed costs is incurred to accommodate the order
• C) the company placing the order is in the same market segment as your current customers
• D) incremental revenue equals incremental operating income

---

Definitions:

Cultural Diffusion

The process by which cultural elements, such as beliefs, technologies, or practices, spread from one society or social group to another.

Cultural Innovation

The process by which new cultural practices, ideas, or objects are created, accepted, and integrated into a society.

Culture Shock

The feeling of disorientation and discomfort experienced when suddenly subjected to an unfamiliar culture or way of life.

English-Language Signs

Public signs, notices, or symbols that use the English language to convey information or instructions.