Which of the following is not true about one-time-only special orders?
A) special orders would be accepted if they result in an increase in the contribution margin regardless of capacity and long-term implications
B) along with other criteria, there must be excess capacity to accept an order
C) along with other criteria, there must not be significant long-term negative implications of accepting a special order
D) the impact on operating income of the acceptance of a special-order must be analyzed by management before making a final decision

Question

Quizplus · Accepted Answer

This statement is not true as special orders should not be accepted solely based on an increase in contribution margin. Other criteria, such as excess capacity and long-term implications, must also be considered.

Which of the Following Is Not True About One-Time-Only Special