Which of the Following Is a Major Consideration When Analyzing

question 23

Multiple Choice

Which of the following is a major consideration when analyzing a special order?

• A)the price must be high enough to cover any incremental costs to fill the order
• B)the company must have a good stock turnover ratio
• C)the profit margin of the special sale must be higher than the regular sales
• D)the sunk costs of the decision must not exceed the irrelevant costs

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Definitions:

Excise Tax

A tax levied on specific goods, services, or transactions, often included in the price of the product.

Supply

The total amount of a good or service that is available to consumers, often at various prices.

Bottled Air

Commercially packaged air, often marketed as pure or from a specific location, sold for personal inhalation.

Doubles

Doubles generally refers to a situation or quantity that is twice as large as a reference or starting point.