Since fixed costs remain constant in the short run,special orders should be accepted as long as the order price is greater than the variable costs.

Question

Quizplus · Accepted Answer

Since fixed costs remain the same in the short run, accepting special orders that cover variable costs is beneficial for generating additional revenue and covering those costs. As long as the order price is greater than the variable costs, it will contribute to the overall profit for the company.

Since Fixed Costs Remain Constant in the Short Run,special Orders