TRUE/FALSE. assuming a company has excess operating capacity, a special order should be accepted if its incremental revenues exceed the incremental costs, and the special order does not negatively impact income.

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06-12-2022
Business

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TRUE/FALSE. assuming a company has excess operating capacity, a special order should be accepted if its incremental revenues exceed the incremental costs, and the special order does not negatively impact income.

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Madoghweidn Madoghweidn · Answer 1 · 2022-12-13T05:33:37-05:00

It is true that assuming a company has excess operating capacity, a special order should be accepted if its incremental revenues exceed the incremental costs, and the special order does not negatively impact income.

What is Incremental Cost?

The overall expense incurred as a result of producing one extra unit of a product is known as the incremental cost. The cost of an incremental unit of production is calculated by examining the additional costs incurred during the production process, such as raw materials.

Last but not least, incremental cost is the extra expense a business incurs whenever it generates one more unit of output. The additional expense consists of pertinent expenses that only alter as a result of the choice to create extra units.

Learn more about incremental costs here: https://brainly.com/question/15279458

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What is Incremental Cost?

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