A small appliance manufacturer is deciding whether to accept or reject a special order for 1,750 appliances.There is sufficient capacity available for the special order.What is relevant information for the decision whether to accept or reject the special order?
A)the cost of the parts for the 1,750 appliances
B)the supervisor's salary
C)the depreciation on assembly equipment
D)the accountant's salary

Question

Quizplus · Accepted Answer

The cost of the parts for the 1,750 appliances is relevant information because it will help determine the cost of producing the appliances and if the revenue from the order will cover those costs.

Answer: C
 The depreciation on assembly equipment is also relevant because it is a cost associated with producing the appliances and needs to be considered when determining if the order will be profitable.

Therefore, the best choices are A and C.

A Small Appliance Manufacturer Is Deciding Whether to Accept or Reject