A Manager Should Always Reject a Special Order If

question 99

Multiple Choice

A manager should always reject a special order if:

• A)there is available excess capacity.
• B)the special order price is less than the variable costs of the order.
• 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:

Communicating Accounting

The process of effectively conveying financial information and analyses to stakeholders through various means such as reports and presentations.

Financial Information System

A computerized system that collects, processes, stores, and reports financial data to assist in decision-making and control.

Dollars and Cents

The basic units of currency in many countries, including the United States, representing the monetary value of goods, services, or financial transactions.

Accounting Information

Data related to the financial transactions and status of an organization that is used for analysis, planning, and decision-making.