When Deciding Whether to Accept a Special Order, Which of the Following

question 195

Multiple Choice

When deciding whether to accept a special order, which of the following is irrelevant?

• A) Available excess capacity
• B) The variable costs associated with the special order
• C) Fixed costs that will not be affected by the order
• D) The effect of the order on regular sales

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Definitions:

Replenishment

Entails the process of replenishing inventory or stock to ensure a continuous supply of products to meet customer demand.

VMI System

Vendor-Managed Inventory System; a streamline approach where the supplier is responsible for maintaining the buyer's inventory levels, often based on shared data.

Continuous Replenishment Program

A supply chain initiative where products are continuously supplied to match customer demands without the need for frequent reordering.

POS Data

Information collected from Point of Sale systems, detailing sales transactions, product movement, and customer purchases.