Opportunity Costs Need to Be Considered When Making Decisions About

question 49

Multiple Choice

Opportunity costs need to be considered when making decisions about special orders:

• A) if fixed costs remain constant.
• B) if irrelevant costs exist.
• C) if there is idle capacity.
• D) if there is no idle capacity.

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Definitions:

Foreign Corporation

A corporation that is incorporated under the laws of a different country from the one in which it primarily operates.

Inventory

Items owned by a company consisting of raw materials, work-in-process, and finished goods that are considered to be part of the business's assets that are ready or will be ready for sale.

Intra-entity Transfers

Transactions involving assets, services, or funds between divisions or departments within the same entity.

Voting Stock

Shares that grant the shareholder the right to vote on corporate matters, such as the election of the board of directors.