Argus Company anticipates that other sales will be affected by the acceptance of a special order.What should the company do?
A)Reject the order.
B)Consider the opportunity cost of lost sales in the incremental analysis.
C)Accept the order.
D)Accept the order if the plant is below capacity.

Question

Quizplus · Accepted Answer

When a company anticipates that other sales will be affected by the acceptance of a special order, it should consider the opportunity cost of lost sales in the incremental analysis. This involves evaluating the potential impact on existing sales and profits to make an informed decision.

Argus Company Anticipates That Other Sales Will Be Affected by the Acceptance