Multiple Choice
If an entity has sufficient spare capacity it is more likely to accept a special order because:
A) there is no opportunity cost to accepting the order.
B) any order that uses up spare capacity will be profitable.
C) management will not want to have their machinery and employees idle.
D) the entity can demand a higher selling price for the special order.
Correct Answer:

Verified
Correct Answer:
Verified
Q2: Which of the following statements is correct?
Q3: The mix between fixed and variable costs
Q4: Which of the following statements about opportunity
Q5: If calculations show that the break-even point
Q6: The point where total sales revenue equals
Q8: Which of the following cannot be used
Q9: Contribution margin equals revenue less:<br>A) cost of
Q10: The contribution margin ratio can be used
Q11: An important assumption in CVP analysis is
Q12: If there are limited resources,the greatest profit