Done on a regular basis, relevant cost pricing in "special-order decisions" can erode normal pricing policies and lead to:
A) Overconfidence in decision-making.
B) A decrease in the firm's long-term profitability.
C) Goal congruence between management and sales personnel.
D) A cost leadership strategy.
E) Maximization of the internal value stream.

Question

Quizplus · Accepted Answer

Regular use of relevant cost pricing in special-order decisions could cause a decrease in the firm's long-term profitability, as it can erode normal pricing policies, which might eventually lead to financial losses or lower profits. Therefore, it is important to evaluate the costs and benefits of accepting special-order decisions properly.

Done on a Regular Basis, Relevant Cost Pricing in "Special-Order