Accepting a Special Order Will Improve Overall Net Operating Income

question 230

Multiple Choice

Accepting a special order will improve overall net operating income if the revenue from the special order exceeds:

• A) the contribution margin on the order.
• B) the incremental costs associated with the order.
• C) the variable costs associated with the order.
• D) the sunk costs associated with the order.

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Definitions:

By

A preposition indicating agency, means, or location; used to specify the person or thing that performs an action or through which a result is obtained.

Quite

Used as an adverb to indicate a considerable degree or fully; extremely.

It's

abbreviation for "it is" or "it has."

Been

The past participle of "be," used in perfect tenses to indicate an action that occurred at an unspecified time before now.