Which of the following statements regarding special orders is (are) false?(A) The primary decision for special orders is determining whether the differential revenue is greater than the differential costs associated with the order.(B) The differential analysis approach to pricing for special orders will always lead to underpricing in the long-run because fixed costs are not included in the analysis.

A. Only A
B. Only B
C. None of these is false.
D. Both of these are false.


Answer: B

Business

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U.S. citizens invested $10 billion in foreign securities during a certain year and $21 billion in acquiring capital goods in foreign countries while foreigners invested only $27.5 billion in U.S. during that year. The net foreign investment of U.S. during that year was _____.

A. -$3.5 billion. B. -$58.5 billion. C. $1.2 billion. D. $3.5 billion.

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Gilly Brothers, an insurance company, incurred losses of about $100 million. To analyze its losses and to overcome them, the company began comparing its own practices against those of its successful competitors. In this scenario, which procedure is adopted by Gilly Brothers?

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You are interested in the effect of increased carbon dioxide versus normal air on the growth of corn plants as well as the effect of green light versus full sunlight on the growth of corn plants. Your plan is to set up your experiment inside a greenhouse where you can control the environment. Which of the following is an aspect of the experiment that should be considered and controlled?

A. All seedlings come from one uniform strain. B. All temperatures and available water remain the same for all plants. C. An increase in carbon dioxide should not result in a substantial decrease of other necessary gases. D. The intensity or brightness of the green light equals the intensity of the full sunlight. E. All of the choices are important considerations.

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Which of the following assertions are usually the two most relevant assertions related to long-lived assets?

a. Existence and Presentation. b. Completeness and Existence. c. Existence and Valuation. d. Valuation and Completeness.

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