One-time-only special orders should only be accepted if:
A)differential revenues exceed variable costs.
B)incremental revenues exceed incremental costs.
C)incremental revenues exceed fixed costs.
D)total revenues exceed total costs.

Question

Quizplus · Accepted Answer

Accepting one-time-only special orders only makes sense if the incremental revenues (additional revenues generated from the order) exceed the incremental costs (additional costs incurred to fulfill the order). If this condition is met, the order will contribute positively to the company's profitability. The other options do not take into account incremental costs and thus do not provide a complete picture of the profitability of the special order.

One-Time-Only Special Orders Should Only Be Accepted If