Which of the following is not a factor to consider when deciding whether to accept a special order?
A) Whether this order will hurt the brand name of the company
B) Whether the offered price is sufficient to cover prime costs and fixed overhead allocated
C) Whether other potential orders would be more profitable
D) Whether additional fixed costs would need to be incurred
E) All of the above

Question

Quizplus · Accepted Answer

The offered price should cover variable costs, not necessarily fixed overhead, as fixed costs are typically not relevant to special order decisions unless they change as a result of the order.

Which of the Following Is Not a Factor to Consider