Which of the Following Is a Major Consideration When Analyzing

question 77

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.

---

Definitions:

Sales Budget

A detailed forecast of future sales, typically the first step in the budgeting process, driving the company's production, workforce, and financial planning.

Cost of Goods Sold

The direct costs attributable to the production of goods sold in a company, including materials and labor.

Selling and Administrative Expenses

The total of all overhead and operational expenses directly tied to the selling and general management of an organization.

Budgeted Purchases

This refers to the estimated amount of goods or services that a business plans to buy over a specific period, as set out in its budget.