The assumption of no short-run or strategic implications is crucial to management's analysis of the one-time-only special order decision.

Question

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The assumption of no short-run or strategic implications is not crucial; in fact, management must consider potential short-run capacity issues and strategic implications such as setting a precedent for future pricing or affecting relationships with existing customers when analyzing a one-time-only special order decision.

The Assumption of No Short-Run or Strategic Implications Is Crucial