Which of the following statements regarding differential costs is (are)false? (A)The full cost fallacy occurs when a decision-maker fails to include fixed manufacturing overhead in the product's cost.
(B)When deciding whether or not to accept a special order,a decision-maker should focus on differential costs instead of full costs.
A)Only A.
B)Only B.
C)Neither A nor B is false.
D)Both A and B are true.

Question

Quizplus · Accepted Answer

The full cost fallacy occurs when a decision-maker incorrectly includes fixed costs in decision-making for special orders, not when they fail to include them.

Which of the Following Statements Regarding Differential Costs Is (Are)false