The basic decision rule on acceptance of special contracts is: – McqOptions

MCQOPTIONS

1.	The basic decision rule on acceptance of special contracts is:
A.	Accept the special contract if additional fixed costs can be covered by contribution from other products
B.	Accept the special contract if the additional revenue from the contract exceeds the fixed costs of manufacture
C.	Accept the special contract if it produces a positive contribution to fixed costs
D.	Accept the special contract if it produces a positive contribution to variable costs
Answer» D. Accept the special contract if it produces a positive contribution to variable costs

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