Additional Business in the Form of a Special Order of Goods

question 36

True/False

Additional business in the form of a special order of goods or services should be accepted when the incremental revenue equals the incremental costs.

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Definitions:

Referent Power

A form of influence based on the charisma or likability of the leader, leading others to identify with them.

Charisma

A personal attribute that enables an individual to inspire and attract followers through their allure and magnetic personality.

Coercive Power

The capability to force someone to perform a desired action through threats or punishment.

Referent Power

A form of influence based on the loyalty and respect one commands due to personal traits or charisma, rather than a formal position or authority.