In cost accounting a special order is a one time customer order often involving a large quantity and a low price this is a chance to make money or lose . This management accounting tutorial examines the special order relevant decision we start by looking at the contribution margin income statement in order . This video is for students that are taking an introduction to managerial accounting course it focuses on special order decisions. Best answer since there is sufficient idle capacity to produce the special order you should not include fixed costs so all you need to do is write out a . This is when businesses need to decide if to accept orders that are on special terms prices lower than normal if the contribution is positive generally accept the
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