Operating at or near full capacity will require a firm considering a special order to recognize potentially the:
A)Opportunity cost from lost sales.
B)Value of full employment.
C)Time value of money.
D)Need for good management.
E)Value of capacity resource management.

Question

Quizplus · Accepted Answer

If a firm is already operating at or near full capacity, it may not have the ability to fulfill a special order without sacrificing sales of its regular products. Recognizing the opportunity cost from lost sales is crucial in making the decision to take on the special order or not.

Operating at or near Full Capacity Will Require a Firm