The general rule for special orders is
A) Profit should be greater after the special order than before it
B) Only take special orders when excess capacity exists
C) The organisation should be as well off after taking the order as it was before taking it
D) Ignore all fixed costs associated with the special order

Question

Quizplus · Accepted Answer

The general rule for special orders is that the organization should be as well off after taking the order as it was before taking it. This means that the special order should not result in any loss or negative impact on the organization's profitability, efficiency, or other important factors. It is important to consider all costs associated with the special order, including both variable and fixed costs, to determine whether it is financially beneficial for the organization. It is also important to only take special orders when there is capacity available to fulfill them, as taking on too many orders can lead to overburdening the organization and negatively impacting its overall performance. While profit is important, it should not be the only consideration when evaluating special orders.

The General Rule for Special Orders Is