Which statement about accepting a special order is true in decision-making terms?

Which statement about accepting a special order is true in decision-making terms?

• A. The Robinson-Patman Act may apply to special orders.
• B. Production becomes less efficient as plant utilization increases.
• C. A special order should always be accepted if it results in an incremental profit.
• D. Accepting a special order may impact the price charged to other customers.

Answer: (D)

When deciding on a special order, the key issue is how it changes the mix of orders you can or will fulfill and what that does to pricing with your other customers. If you have limited capacity, taking on a special order uses up resources that might otherwise go to regular orders at your standard prices. That can force you to rethink or adjust the price you’re charging others, either to fill the remaining capacity or to stay competitive with the new mix of demand. In short, a special order doesn’t exist in isolation; it can shift expectations and pricing with existing customers, so the decision must consider that potential impact, not just the incremental profit from that single order. Legal or efficiency notes can complicate matters in particular cases, but the most universally true point in decision terms is this effect on how you price for other customers.

When deciding on a special order, the key issue is how it changes the mix of orders you can or will fulfill and what that does to pricing with your other customers. If you have limited capacity, taking on a special order uses up resources that might otherwise go to regular orders at your standard prices. That can force you to rethink or adjust the price you’re charging others, either to fill the remaining capacity or to stay competitive with the new mix of demand. In short, a special order doesn’t exist in isolation; it can shift expectations and pricing with existing customers, so the decision must consider that potential impact, not just the incremental profit from that single order. Legal or efficiency notes can complicate matters in particular cases, but the most universally true point in decision terms is this effect on how you price for other customers.