A Special Order Generally Should Be Accepted If

question 54

Multiple Choice

A special order generally should be accepted if:

• A)its revenue exceeds allocated fixed costs, regardless of the variable costs associated with the order.
• B)excess capacity exists and revenue exceeds variable costs associated with the order.
• C)excess capacity exists and the revenue exceeds allocated fixed costs.
• D)the revenue exceeds total costs, regardless of available capacity.
• E)the revenue exceeds variable costs, regardless of available capacity.

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Definitions:

Lower Power Parties

Those participants in a negotiation or conflict who possess less influence, resources, or status compared to other parties involved.

Business Deals

Agreements or transactions between businesses or individuals for the purchase, sale, or exchange of goods, services, or information.

Big Players

Major or influential entities in a particular area, industry, or context, often having significant power or influence.

Use of Threats

A negotiation or influence strategy involving the signalling of intent to inflict harm or loss on another party if one's demands are not met.