When deciding whether to accept a special order, spare or idle capacity is not a factor that needs to be taken into account.

Question

Quizplus · Accepted Answer

Spare or idle capacity is a crucial factor that needs to be considered when deciding whether to accept a special order, as it represents potential revenue that could offset the cost of accepting the order. If there is enough spare or idle capacity to fulfill the order without incurring additional costs, accepting the order may be profitable.

When Deciding Whether to Accept a Special Order, Spare or Idle