When evaluating a special order, management should:
Options:
| a. Only accept the order if the incremental revenue exceeds all product costs. b. Only accept the order if the incremental revenue exceeds fixed product costs. c. Only accept the order if the incremental revenue exceeds total variable product costs. d. Only accept the order if the incremental revenue exceeds full absorption product costs. e. Only accept the order if the incremental revenue exceeds regular sales revenue. |
The Correct Answer Is:
- a. Only accept the order if the incremental revenue exceeds all product costs.