In a special order decision, fixed costs that do not differ between two alternatives are _____.
A)of major importance to the decision
B)considered opportunity costs
C)important only if they are a material dollar amount
D)irrelevant

Question

Quizplus · Accepted Answer

Fixed costs that do not differ between two alternatives are irrelevant in a special order decision as they do not affect the comparison between the alternatives. Only the relevant costs, which are the incremental costs and revenues between the alternatives, should be considered in the decision-making process.

In a Special Order Decision, Fixed Costs That Do Not