Decisions about pricing a special order at less than "normal" selling price per unit should be made solely on the basis of the net profit or loss that might be generated from the special order.

Question

Quizplus · Accepted Answer

While the net profit or loss from a special order is important, decisions should also consider factors such as capacity utilization, the impact on regular sales, and potential long-term relationships with customers.

Decisions About Pricing a Special Order at Less Than "Normal