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Additional business in the form of a special order of goods or services should be accepted when the incremental revenue equals the incremental costs. A. True B. False
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Additional business in the form of a special order of goods or services should be accepted when the incremental revenue equals the incremental costs.

A. True
B. False

User GeirGrusom
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1 Answer

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Answer: False

Step-by-step explanation:

The aim of the business is to ideally make a profit. As a result, Additional business should only be accepted if the incremental cost of doing so is less than the incremental revenue accrued from doing so.

If incremental revenue equals incremental cost, there is no point in engaging in the additional business as it brings no extra value to the business.

User ChrisCurrie
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