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