Which of the Following Is Not a Qualitative Issue in a Special

question 114

Multiple Choice

Which of the following is not a qualitative issue in a special order pricing decision?

• A)Will accepting the special order require the hiring of extra workers or payment of overtime?
• B)Will accepting the special order result in the loss of regular customers?
• C)Will it generate a positive contribution margin?
• D)If the special order generates new business,will the customer purchase again at the regular price?

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Definitions:

Goods Produced

The total quantity of physical items that are manufactured or processed by a company or economy within a specific time frame.

Law of Comparative Advantage

A principle that states that individuals, firms, regions, or nations can gain by specializing in the production of goods that they produce cheaply (at a low opportunity cost) and exchanging them for goods they cannot produce cheaply (at a high opportunity cost).

Labor-Intensive Commodities

Goods that require a higher proportion of labor in their production process compared to materials and capital.

Opportunity Cost

The value of the best alternative that must be forgone as a result of choosing a particular action or decision.