Asked by Asona Fagan on May 10, 2024
Verified
When excess capacity exists,managers should accept a special order if the special order price exceeds the ________.
Excess Capacity
A situation where a company can produce more goods or provide more services than currently demanded, indicating unused productive potential.
Special Order
A one-time customer order often involving a large quantity and requiring a separate pricing or product specification arrangement.
Special Order Price
The price charged for a product or service that is outside the company's normal scope of work or products; often tailored pricing for a specific customer request.
- Apply knowledge of costing methods to evaluate special order decisions.
Verified Answer
Learning Objectives
- Apply knowledge of costing methods to evaluate special order decisions.
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