Should the special order be accepted?
A) cannot determine from the data given
B) yes
C) no
D) there would be no difference in accepting or rejecting the special order

Question

Quizplus · Accepted Answer

Accepting a special order is beneficial if the revenue from the order exceeds the incremental costs of fulfilling the order. Without specific data, we cannot calculate exact figures, but generally, if a company has excess capacity and can cover the variable costs and contribute to fixed costs and profits, accepting the special order is advisable.

Should the Special Order Be Accepted