To make a decision about a special order, managers need to know whether:
A) The customer has tried to buy the product from a competitor
B) The customer will buy the same product in the future
C) The customer is a not-for-profit organisation
D) There are any opportunity costs

Question

Quizplus · Accepted Answer

Opportunity costs are relevant for making decisions about special orders because they represent the potential benefits an individual, investor, or business misses out on when choosing one alternative over another. Understanding these costs helps managers evaluate whether the resources required for the special order could be better utilized elsewhere, impacting the decision-making process.

To Make a Decision About a Special Order, Managers Need