Which factor is not relevant in deciding whether or not to accept a special order? Incremental...
Which factor is not relevant in deciding whether or not to accept a special order?
Incremental revenue that will be earned
Additional costs that will be incurred
The effect that the order will have on the company's regular sales volume and selling prices
The average cost of production if the special order is accepted
Homework Answers
Solution:
Factor not relevant in deciding whether or not to accept a special order is "The average cost of production if the special order is accepted"
Explanation:
Incremental revenue, additional cost to be incurred, effect on regular sales or selling prices all are relevant in special order decision. However in special order decision, we have nothing to do with average cost of production if special order is accepted. Therefore same is not relevant.
Add Answer to:
Which factor is not relevant in deciding whether or not to
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What is the relevant cost per unit in this case? Exercise 12-9 Special Order Decision (LO12-4)...
What is the relevant cost per unit in this case?
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14. A company is within plant capacity. It is contemplating whether a special order should be accepted. The order will not impact regular sales. If the company accepts the special order, what will occur? A) Incremental costs will not be affected. B) Net Income will increase if the special sales price per unit exceeds the unit variable costs. C) There are no incremental revenues. D) Both fixed and variable costs will increase. 15. A major accounting contribution to the managerial...
Imperial Jewelers is considering a special order for 22 handcrafted gold bracelets to be given as...
Imperial Jewelers is considering a special order for 22
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$409.00 and its unit product cost is $266.00 as shown below:
Direct materials
$
150
Direct labor
81
Manufacturing overhead
35
Unit product cost
$
266
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Imperial Jewelers is considering a special order for 17 handcrafted gold bracelets to be given as...
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Imperial Jewelers is considering a special order for 23 handcrafted gold bracelets to be given as...
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Imperial Jewelers is considering a special order for 22 handcrafted gold bracelets to be given as...
Imperial Jewelers is considering a special order for 22 handcrafted gold bracelets to be given as gifts to members of a wedding party. The normal selling price of a gold bracelet is $401.00 and its unit product cost is $264.00 as shown below. $ 149 82 Direct materials Direct labor Manufacturing overhead Unit product cost 33 $ 264 Most of the manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However,...
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Imperial Jewelers is considering a special order for 22
handcrafted gold bracelets to be given as gifts to members of a
wedding party. The normal selling price of a gold bracelet is
$409.00 and its unit product cost is $266.00 as shown below:
Direct materials
$
150
Direct labor
81
Manufacturing overhead
35
Unit product cost
$
266
Most of the manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in...
Opportunity costs are relevant to which of the following decisions? Whether to accept a special order when capacity limited no Whether to make or buy a product yes no no no yes yes yes O no, yes O no, no yes, no yes, yes
Imperial Jewelers is considering a special order for 17 handcrafted gold bracelets to be given as gifts to members of a wedding party. The normal selling price of a gold bracelet is $402.00 and its unit product cost is $264.00 as shown below: Direct materials Direct labor Manufacturing overhead $ 149 83 32 Unit product cost $264 Most of the manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $15...
Imperial Jewelers is considering a special order for 23 handcrafted gold bracelets to be given as gifts to members of a wedding party. The normal selling price of a gold bracelet is $403.00 and its unit product cost is $261.00 as shown below. Direct materials Direct labor Manufacturing overhead $ 142 87 Unit product cost $ 261 Most of the manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $15...
Imperial Jewelers is considering a special order for 22 handcrafted gold bracelets to be given as gifts to members of a wedding party. The normal selling price of a gold bracelet is $401.00 and its unit product cost is $264.00 as shown below. $ 149 82 Direct materials Direct labor Manufacturing overhead Unit product cost 33 $ 264 Most of the manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However,...
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