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Author Question: When there is an excess capacity, it makes sense to accept a one-time-only special order for less ... (Read 34 times)

HCHenry

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Question 1

When making decisions ________.
◦ qualitative  factors are not relevant as they can't be quantified
◦ more weight should be given to quantitative factors
◦ appropriate weight must be given to both quantitative and qualitative factors
◦ quantitative factors are relevant but qualitative factors are rarely relevant

Question 2

When there is an excess capacity, it makes sense to accept a one-time-only special order for less than the current selling price if  ________.
◦ incremental revenues exceed incremental costs
◦ additional fixed costs is incurred to accommodate the order
◦ the company placing the order is in the same market segment as your current customers
◦ incremental revenue equals incremental operating income


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Marked as best answer by HCHenry on Mar 6, 2021

daiying98

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HCHenry

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Reply 2 on: Mar 6, 2021
Wow, this really help


amynguyen1221

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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