The general rule for special orders is:
A) Profit should be greater after the special order than before it
B) Only take special orders when excess capacity exists
C) Accept if price is greater than or equal to the sum of variable cost, relevant fixed costs and opportunity costs.
D) Ignore all fixed costs associated with the special order

Question

Quizplus · Accepted Answer

The general rule for special orders is to accept them if the price covers the variable costs, relevant fixed costs, and opportunity costs, ensuring that the order contributes positively to profit.

The General Rule for Special Orders Is