Accept or Reject Special Order | Managerial Accounting

When deciding whether to accept or reject a special order, you should:
1. only consider relevant costs (ignore any costs that won't change whether or not you accept the order)
2. accept the order if the incremental revenue exceeds the incremental cost of accepting the order
If you don't have idle capacity, then the forgone profit of any actions you are giving up (by accepting the special order) should be included as a cost of accepting the special order.-
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