If There Is Excess Capacity, the Minimum Acceptable Price for a Special

question 24

Multiple Choice

If there is excess capacity, the minimum acceptable price for a special order must cover

• A)variable costs associated with the special order.
• B)variable and fixed manufacturing costs associated with the special order.
• C)variable and incremental fixed costs associated with the special order.
• D)variable costs and incremental fixed costs associated with the special order plus the contribution margin usually earned on regular units.

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Definitions:

Horizon Moon

The optical illusion observed when the moon appears larger near the horizon than it does while higher up in the sky.

Motion Pictures

A series of still images that, when shown on a screen, create the illusion of moving images due to the phi phenomenon.

Stroboscopic Movement

The optical illusion of perceived motion created when a series of static images are shown in rapid sequence.

Still Photos

Photographs that capture a single moment in time, particularly in contrast to moving images.