Asked by
Brian Kirksey
on Oct 14, 2024Verified
Part of the decision to accept additional business should be based on a comparison of the incremental (differential)costs of the added production with the additional revenues to be received.
Incremental Costs
Costs that change depending on the level of production or an alternative course of action.
Additional Revenues
Extra income generated from sources outside of the company's main business operations.
- Comprehend the underlying tenets governing decisions on whether to manufacture in-house or purchase externally, as well as for special orders.
Verified Answer
RA
Learning Objectives
- Comprehend the underlying tenets governing decisions on whether to manufacture in-house or purchase externally, as well as for special orders.
Related questions
If Accepting Additional Business Would Cause Existing Sales to Decline,the ...
Assuming a Company Has Excess Operating Capacity,a Special Order Should ...
Additional Business in the Form of a Special Order of ...
How Many Steps Does the Standard Agenda Form of Decision-Making ...
A Suggested Purchase Order Would Most Likely Include All of ...