(Solved):Which of the following techniques is most useful for a special order decision? a. Accounting…

 

Question

Which of the following techniques is most useful for a special order decision?

a. Accounting rate-of-return method

b. Payback method

c. Incremental analysis

d. Present value method

 

EXPERT ANSWER

Incremental analysis is one of the most useful techniques in evaluating special order decision. A special order decision is required in cases where the company receives orders that are different or in addition to their regular production or sales. This usually result to additional revenue because of

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