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 loss in the firm's profitability.
C)Conflicting goals between management and sales personnel.
D)A cost leadership strategy.
E)Maximization of resources.

Question

Quizplus · Accepted Answer

Relevant cost pricing in special order decisions may result in a loss in the firm's profitability if the price offered for the special order is lower than the normal selling price. This erosion of profitability could potentially be harmful to the firm's financial stability in the long run. Overconfidence in decision-making, conflicting goals between management and sales personnel, and cost leadership strategies are not directly related to relevant cost pricing in special order decisions. Maximization of resources, while a positive outcome, is not directly related to the potential negative impact of relevant cost pricing on profitability.

Done on a Regular Basis,relevant Cost Pricing in Special Order