Indicate whether each of the following statements is true or false.A special order decision involves an offer to purchase goods at a price that is lower than normal.??____To analyze a special order decision, a manager should identify differential costs and revenues.??____A special order should be accepted if avoidable costs exceed differential revenue.??____Availability of idle capacity is often relevant to special order decisions.??____Alternative uses for facilities should be considered in making a special order decision.??____
What will be an ideal response?
| A special order decision involves an offer to purchase goods at a price that is lower than normal. | F |
| To analyze a special order decision, a manager should identify differential costs and revenues. | T |
| A special order should be accepted if avoidable costs exceed differential revenue. | F |
| Availability of idle capacity is often relevant to special order decisions. | T |
| Alternative uses for facilities should be considered in making a special order decision. | T |
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