A customer placed a special order for 1500 units for 15 each the customer is willing to shoulder the delivery costs hence the business will not incur additional variable operating costs should the company accept or reject the special order solution the company has 2000 units excess capacity to fill up the special order of 1500 units. In cost accounting a special order is a one time customer order often involving a large quantity and a low price this is a chance to make money or lose money tough choice a special order requires you to make decisions using relevant information you decide which costs and revenue are relevant . This management accounting tutorial examines the special order relevant decision we start by looking at the contribution margin income statement in order to find a relevant decision that answers . This video is for students that are taking an introduction to managerial accounting course it focuses on special order decisions 8 smart questions to ask hiring managers in a job interview . One type of short term decision that businesses frequently have to make is whether or not to accept special order requests from customers a special order is an order that the company did not anticipate when developing its budget for the year therefore this is an additional opportunity to generate revenue above sales goals special orders typically
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