A Special Order Generally Should Be Accepted If

question 99

Multiple Choice

A special order generally should be accepted if:

• A) its revenue exceeds allocated fixed costs, regardless of the variable costs associated with the order.
• B) excess capacity exists and the revenue exceeds all variable costs associated with the order.
• C) excess capacity exists and the revenue exceeds allocated fixed costs.
• D) the revenue exceeds variable costs, regardless of available capacity.