QS Study

Special sales order: Managers must often evaluate whether a special sales order should be accepted, and if the order is accepted, the price that should be charged. It is a unique one-time order made by a customer. It is an order that the company did not anticipate. This is a possibility to make money or lose money. A special sales order is a one-time order that is not considered part of the company’s normal ongoing business. These orders normally need special processing or involve a request for a low price.

When making this assessment, one must evaluate the incremental change in revenue for the firm, against which is offset the incremental change in costs. You fix on which costs and revenue are relevant. Based on your analysis, you make a decision designed to maximize your profit. After decision making, a document generated by a seller for its internal use in processing a customer order. The document basically translates the format of the purchase order received from the customer into the format used by the seller. So, It is the sale of an item that is not stocked by ordering it from another company.