Which of the Following Is NOT a Major Consideration When

question 71

Multiple Choice

Which of the following is NOT a major consideration when analyzing a special order?

• A) Will the price be high enough to cover any incremental costs to fill the order?
• B) Does the company have excess capacity available?
• C) Will the profit margin of the special sale be as high as regular sales?
• D) Will the special order negatively impact regular sales?

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Definitions:

Cash Payments

Transactions in which payment for goods or services is made in cash at the time of the transaction.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits.

Debts

Obligations or amounts of money that are owed by a person, company, or country to creditors.

Accounts Payable

A liability account that represents amounts a company owes to suppliers or creditors for goods and services received but not yet paid for.