When making a decision regarding a special order management must consider:
A)Whether there is enough capacity to meet the order.
B)Additional costs associated with the order.
C)Whether the selling price of the special order covers the variable costs of making the product.
D)All of the above.

Question

Quizplus · Accepted Answer

Management should consider all of these factors before accepting a special order. They need to ensure there is enough capacity to meet the order, evaluate any additional costs associated with the order, and determine whether the selling price of the special order covers the variable costs of making the product. Only after carefully considering all of these factors can management make an informed decision about accepting a special order.

When Making a Decision Regarding a Special Order Management Must