A special order generally should be accepted if:

A. excess capacity exists and the revenue exceeds all variable costs associated with the order.
B. excess capacity exists and the revenue exceeds allocated fixed costs.
C. its revenue exceeds allocated fixed costs, regardless of the variable costs associated with the order.
D. the revenue exceeds variable costs, regardless of available capacity.
E. the revenue exceeds total costs, regardless of available capacity.


Answer: A

Business

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