If an entity has sufficient spare capacity it is more likely to accept a special order because:
A) there is no opportunity cost to accepting the order.
B) any order that uses up spare capacity will be profitable.
C) management will not want to have their machinery and employees idle.
D) the entity can demand a higher selling price for the special order.

Question

Quizplus · Accepted Answer

When an entity has spare capacity, accepting a special order incurs no opportunity cost because the resources would otherwise remain unused.

If an Entity Has Sufficient Spare Capacity It Is More