Costs that increase due to a special order are not considered as incremental.

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Costs that increase due to a special order are considered as incremental costs. Incremental costs are the additional costs incurred or avoided as a direct result of a particular decision. Special orders are unique orders that a business receives and are not part of the normal course of the business. Therefore, any costs that increase due to fulfilling such special orders are considered incremental costs.

Costs That Increase Due to a Special Order Are Not