Additional business in the form of a special order of goods or services should be accepted when the incremental revenue equals the incremental costs.

Question

Amyre McClinton · Accepted Answer

Final Answer : False, Explanation :  Accepting additional business in the form of a special order should be considered when the incremental revenue exceeds the incremental costs, not just equals them, to ensure profitability.

Additional business in the form of a special order of goods or services should be accepted when the incremental revenue equals the incremental costs.

Definitions

Learning Objectives

Learning Objectives

Related questions