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:

Numerous

Existing in large numbers or quantities; very many.

Various

Describing a group composed of many different elements or individuals.

Disconfirming Instances

Disconfirming instances are examples or cases that contradict a hypothesis or theory, providing evidence against its accuracy or generalizability.

Confirming Instances

Examples or occurrences that support a theory or a hypothesis.