A manager should always reject a special order if
A)the special order price is less than the variable costs of the order.
B)there is available excess capacity.
C)the special order price is less than the regular sales price.
D)the special order will require variable nonmanufacturing expenses.

Question

Quizplus · Accepted Answer

Accepting a special order at a price lower than its variable costs would result in a loss on the order, as the company would not cover the incremental costs of fulfilling the order.

A Manager Should Always Reject a Special Order If