chapter 10 special orders Flashcards
(4 cards)
1
Q
What are special orders
A
These are for one time customers often involving a specific quantity and a low price
2
Q
What is used to measure the impact of special orders
A
- The quantitative measure- Measuring the quantity or the value
- Contribution- The difference between sales revenue and the variable cost per unit
- The fixed costs- They do not change as output increases regardless of how many units have been sold
3
Q
Special orders formula
A
Total contribution x Number of items sold
4
Q
Other factors that can affect Special orders
A
- Capacity
- Labour Demands
- Future orders
- Existing customers
- Product adjustment
