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:

Discontinued Inventory

Discontinued inventory includes products that are no longer being produced or sold by a company, often due to obsolescence or strategy shifts.

Gross Profit Margin

A profitability metric that shows the percentage of revenue that exceeds the cost of goods sold, indicating the efficiency in producing goods.

Operating Expenses

Ongoing costs for running a business that are not directly associated with creating the product or service.