Asked by Damir Hollis on Jun 28, 2024
Verified
A special one-time order should never be accepted if the unit sales price is less than the unit variable cost.
Unit Variable Cost
The variable cost associated with producing one unit of product, including labor, materials, and other costs that vary with production volume.
Unit Sales Price
The amount of money charged for one unit of a product or service.
- Cultivate a comprehension of the standards for the acceptance of special orders and decisions related to pricing.
Verified Answer
SS
Sukhraj SinghJul 02, 2024
Final Answer :
True
Explanation :
Accepting an order with a unit sales price less than the unit variable cost would result in a loss for the company. It is not financially feasible to accept such orders in the long run.
Learning Objectives
- Cultivate a comprehension of the standards for the acceptance of special orders and decisions related to pricing.
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