A Small Appliance Manufacturer Is Deciding Whether to Accept or Reject

question 92

Multiple Choice

A small appliance manufacturer is deciding whether to accept or reject a special order for 1,750 appliances.There is sufficient capacity available for the special order.What is relevant information for the decision whether to accept or reject the special order?

• A)the cost of the parts for the 1,750 appliances
• B)the supervisor's salary
• C)the depreciation on assembly equipment
• D)the accountant's salary

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Definitions:

Patents

Legal documents granting an inventor exclusive rights to produce, use, and sell an invention for a certain period.

Account Group

A classification system used in accounting to organize financial transactions, ledgers, or accounts based on similar characteristics.

Supplies

Items and materials used in the everyday operations of a business, often consumable and requiring regular replenishment.

Accounts Receivable

The amount clients owe a company for goods or services that have been delivered but remain unpaid.