A Manager Should Always Reject a Special Order If

question 256

Multiple Choice

A manager should always reject a special order if

• A)the special order price is less than the variable costs of the order.
• B)there is available excess capacity.
• C)the special order price is less than the regular sales price.
• D)the special order will require variable nonmanufacturing expenses.

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Definitions:

F-test Statistic

A statistical test used to compare the variances of two populations to investigate whether they are equal.

Regression Equation

An equation derived from regression analysis that expresses the predicted value of the dependent variable as a function of one or more independent variables.

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to observe its effect on the dependent variable.

Regression Coefficient

A value that represents the degree of change in the dependent variable for a one-unit change in the independent variable within a regression model.