Decisions on the Price to Bid on a One-Time-Only Special

question 144

Multiple Choice

Decisions on the price to bid on a one-time-only special order should include

• A)only cost data.
• B)only the potential bids of competitors.
• C)existing fixed manufacturing overhead.
• D)cost data, and the use of variable costing income statements.
• E)cost data and potential bids of competitors.

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Definitions:

Expected Return

The anticipated return on an investment, reflecting the probabilities of various outcomes.

Covariances

A measure indicating the extent to which two variables change together; if the variables tend to show similar behavior, the covariance is positive.

Security Returns

Represents the profit or loss generated on an investment over a particular period of time.

Economic Forces

Factors such as inflation, interest rates, economic growth, and policies that influence the operation of the economy and impact businesses and investments.