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Nov 24, 2024

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Uploaded by BrigadierWillpower1924

11/20/23, 7:46 AM Chapter 9 Quiz https://www.ameengage.com/mod/quiz/review.php?attempt=4684833&cmid=1260545&page=5 1/2 English (en) English (en) Français - Canada (fr_ca) Dashboard / My courses / [Seneca 09/2023] HTM440NHA - Nardi / CHAPTER 9 - Relevant Costs and Business Strategies / Chapter 9 Quiz Question 6 Incorrect Mark 0.00 out of 1.00 Suppose that a restaurant has sufficient capacity to fulfill an entire special order of bagged lunches and that the variable cost of producing a normal lunch is equal to the variable manufacturing cost of producing a special-order bagged lunch. Which of the following statements is true regarding the decision to accept or reject the special order? Select one: a. Variable cost is irrelevant to the decision. b. There is an opportunity cost related to foregone contribution margin from regular sales.  c. The company should definitely accept the special order. d. The selling price of the special order will always be irrelevant to the decision. Your answer is incorrect. Explanation: Variable cost is irrelevant to the decision since it is the same under both alternatives. In other words, variable costs are not differential between the alternatives. The correct answer is: Variable cost is irrelevant to the decision.

11/20/23, 7:46 AM Chapter 9 Quiz https://www.ameengage.com/mod/quiz/review.php?attempt=4684833&cmid=1260545&page=5 2/2 Français (fr)

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