What is the key element in determining whether to accept or reject a special order?
Deciding to accept or reject a special order is a choice between alternatives. Accepting or rejecting a special order involves comparing the purchase price associated with the special order to the cost to produce the items.
When making a decision to accept a special order management must consider?
Question: mcq When making a decision to accept a special order, management must consider the impact that additional manufacturing time will have on unit costs of its current products. whether the purchaser will accept additional high costs of a special order.
What qualitative factors should consider before accepting or rejecting a special order?
When deciding whether to accept a special order, management must consider several factors:
- The capacity required to fulfill the special order.
- Whether the price offered by the buyer will cover the cost of producing the products.
- The role of fixed costs in the analysis.
- Qualitative factors.
What is the decision rule for special order?
Special-order decisions involve situations in which management must decide whether to accept unusual customer orders. These orders typically require special processing or involve a request for a low price.
How do you accept or reject a trend?
Accepting or rejecting a trend is purely a matter of personal choice. You can even consider setting your trend. It is advisable to accept a trend only if you are wholly satisfied with what it has to offer. If you make the decision half-heartedly, you will feel a misfit and not be comfortable with your choice.
When making a decision regarding accepting a special order a manager should consider all of the following except?
Calculate the Price
| Which of the following best describes a “sunk cost”? | Costs that were incurred in the past and cannot be changed |
|---|---|
| Managers should consider all of the following when deciding whether to accept a special order, except | fixed costs that will not be affected by the order. |
In what scenario would a special order be accepted?
The general rule is to accept a special order if the benefits exceed costs. Otherwise, turn down respectfully. If the business has excess capacity to fill the special order, it would accept if incremental sales revenue exceeds incremental variable costs.
Why do you always encounter trends and fads?
Answer. Answer: We can always encourage fads and trends because humans are the fickle creatures which find certain level of tedium in the overall consistency, even though if they works properly. That’s why we have many failed PCs as well as lots of mac OS trends which sucked only for there to be fully changed.
When to accept or reject a special order?
In this event, the business should properly decide whether to accept or reject the special order. The rule is to accept the order if benefits exceed costs.
When to make a short term special order decision?
One type of short-term decision that businesses frequently have to make is whether or not to accept special order requests from customers. A special order is an order that the company did not anticipate when developing its budget for the year.
What do you need to know about special orders?
Tough choice. A special order requires you to make decisions using relevant information. You decide which costs and revenue are relevant. Based on your analysis, you make a decision designed to maximize your profit. Keep the following points in mind when you’re considering special orders:
How are costs associated with a special order decision?
In order to identify the relevant costs associated with a special order decision, we must look at the existing costs to determine which costs will be paid if the order is accepted. Previously incurred fixed costs are never relevant. The only fixed costs that should be considered are fixed costs that are incurred because of the special order.