Which of the following would be a reason to reject a special order?
A) The incremental revenues exceed the incremental costs
B) The absorption-costing per-unit cost is greater than the price being offered
C) The order exceeds the company's excess production capacity
D) Qualitative factors that would cause the selling price of the product to increase in the future
E) All of the above
F) None of the above

Question

Quizplus · Accepted Answer

If the order exceeds the company's excess production capacity, the company cannot fulfill the order without affecting its regular production, making it a valid reason to reject the special order.

Which of the Following Would Be a Reason to Reject