Answer the Following Question(s)using the Information Below

question 113

Multiple Choice

Answer the following question(s) using the information below.Grant's Kitchens is approached by Ms.Tammy Wang, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers.The following per unit data apply for sales to regular customers:
Grant's Kitchens has excess capacity.Ms.Wang wants the cabinets in cherry rather than oak, so direct material costs will increase by $30 per unit.
-Other than price, what other item should Grant's Kitchens consider before accepting this one-time-only special order?

• A)reaction of shareholders
• B)management stock options
• C)demand for cherry cabinets
• D)price is the only consideration
• E)reaction of existing customers to the lower price offered to Ms.Wang

---

Definitions:

Normal Standards

The expected performance or cost levels under normal operating conditions, used for budgeting or measuring efficiency.

Ideal Standards

Benchmark or optimal performance levels set in managerial accounting to evaluate operational efficiency, without considering any business constraints.

Theoretical Standards

Idealized cost and efficiency targets in manufacturing or production, based on perfect operating conditions.

Standard Cost Variances

The differences between the expected (standard) costs and the actual costs incurred.