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.

---

Definitions:

Participative Decision Making

A decision-making process where all members of a group are involved in identifying problems and developing solutions, enhancing team involvement and commitment.

Total Quality Management

A management approach focused on continuous improvement of all organizational processes, leading to high-quality products and services.

Cultural Diversity

The coexistence of different cultural, ethnic, racial, and social groups within a society, enriching its social fabric.

Racially Dissimilar

Referring to individuals or groups that are different from each other in terms of racial or ethnic background.