Accepting a special order will improve overall net operating income if the revenue from the special order exceeds:
A. the variable costs associated with the order.
B. the incremental costs associated with the order.
C. the sunk costs associated with the order.
D. the contribution margin on the order.
Answer: B
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An example of a direct material when manufacturing an automobile is
a. fabric; b. glue; c. screws, d. washers; e. nails
Which of the following sales personnel activities is considered ethically acceptable behavior?
A. Attending college in the evening but taking an afternoon off to prepare for class. B. Taking the family to Disneyworld and writing it off on the expense account. C. Splitting commissions with fellow employees to win a sales contest. D. Attending a college course on company time. E. Giving a $10 dollar gift to a $10,000 customer.
The initials GAAP stand for:
A) General Acceptance of Accounting Procedures. B) Generally Accepted Accounting Plans. C) Generally Accepted Accounting Principles. D) Generally Accepted Accounting Practices.
Which of the following statements is TRUE?
A) The person most responsible for initiating the use of interchangeable parts in manufacturing was Eli Whitney. B) The origins of management by exception are generally credited to Frederick W. Taylor. C) The person most responsible for initiating the use of interchangeable parts in manufacturing was Walter Shewhart. D) The origins of the scientific management movement are generally credited to Henry Ford. E) The person most responsible for initiating the use of interchangeable parts in manufacturing was Henry Ford.