Which of the statements below is false regarding special order decisions?
A)A fixed?cost element of an identical amount that is common among all alternatives is essentially irrelevant.
B)Fixed cost per unit is equal to total fixed costs divided by a selected volume level.
C)The contribution approach offers more detailed information than does the absorption approach.
D)Fixed cost per unit is a necessary piece of information in the decision?making

Question

Quizplus · Accepted Answer

Fixed cost per unit is not a necessary piece of information in special order decision-making because special order decisions typically focus on the incremental costs and benefits of the order, where variable costs and incremental fixed costs (if any) are relevant, but the allocation of fixed costs per unit is not directly relevant to the decision.

Which of the Statements Below Is False Regarding Special Order